Abstract The spread of the COVID-19 pandemic has caused severe damage to the Chinese cruise market since 2020. It is crucial for the local government to reformulate the subsidy policy to respond to the changing environment. We propose a cruise supply chain system to investigate the choice of subsidy recipients and the setting of optimal subsidy levels with a budget-constrained government during the access restriction period and post-epidemic period. We find that in both periods, as long as the subsidy achieves the optimal level, either the cruise lines, the travel agency, or the passengers as recipients of the subsidy policy can maximize the market demand and recover the cruise market after the COVID-19 outbreak. However, as the budget increases, subsidizing passengers can improve the “low price dilemma” of the Chinese cruise market. Compared with the access restriction period, the local government should adjust the subsidy level in the post-epidemic period. Interestingly, the subsidy policy does not always positively impact the international cruise line's profit in the post-epidemic period.

    Highlights Mark off two periods of recovery for the cruise market under the impact of the COVID-19. Government budget restrictions and competition between cruise lines are considered. The optimal subsidy policies under the two periods are derived. Supply chain performances under the two periods are compared. The effects of the subsidy policies are examined.


    Access

    Check access

    Check availability in my library

    Order at Subito €


    Export, share and cite



    Title :

    Optimal subsidy policies of the Chinese cruise market under the impact of COVID-19


    Contributors:
    Liu, Jiaguo (author) / Zhao, Aixiang (author) / Kong, Yudan (author) / Wang, Junjin (author)

    Published in:

    Transport Policy ; 126 ; 280-291


    Publication date :

    2022-07-20


    Size :

    12 pages




    Type of media :

    Article (Journal)


    Type of material :

    Electronic Resource


    Language :

    English




    Subsidy policies and supply chain management for emerging cruise industry

    Wang, Lei / Xu, Chengyuan / Guo, Xiaolong | Taylor & Francis Verlag | 2021


    Optimal transit subsidy policy

    Vickrey, William | Online Contents | 1980


    A game-theoretic model to compare charging infrastructure subsidy and electric vehicle subsidy policies

    Shao, Jing / Jiang, Changmin / Cui, Yinglong et al. | Elsevier | 2023


    Overcoming the Downs-Thomson Paradox by transit subsidy policies

    Wang, Wei (Walker) / Wang, David Z.W. / Zhang, Fangni et al. | Elsevier | 2016


    The Analysis of Subsidy Policies for Alternative Fuel Vehicles

    Chen, Peng Yu ;Tseng, Chao Heng ;Lin, Yen Kuang | Trans Tech Publications | 2011