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Design of “Fly-Cruise” products with advanced algorithm: A case study of cruise tours in China

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  • Guo, Wei-You
  • Lian, Feng
  • Guo, Huanxiu
  • Yang, Zhong-Zhen

Abstract

To assist cruise companies in designing the technic-economic specifications of “fly-cruise” products and attracting international tourists, this paper proposes a model of itinerary planning and dynamic pricing with advanced algorithm. We integrate the Reinforcement Learning (RL) and Genetic Algorithm (GA) to develop a hybrid algorithm to obtain the optimal solution of the model. Taking Malaysian consumers travelling to China for cruise tours as a case study, we empirically test the model with real market data and use it to analyze the impact of innovating “fly-cruise” products on the deficit of China's inbound and outbound tourists. The results show that the innovating “fly-cruise” products will attract 20.52 million Southeast Asian tourists to China annually and generate a profit of US$ 3.56 billion for cruise companies. It highlights that the advanced algorithm based “fly-cruise” products can help China to effectively reduce the deficit of inbound and outbound tourists and improve the international balance of service trade.

Suggested Citation

  • Guo, Wei-You & Lian, Feng & Guo, Huanxiu & Yang, Zhong-Zhen, 2022. "Design of “Fly-Cruise” products with advanced algorithm: A case study of cruise tours in China," Transport Policy, Elsevier, vol. 121(C), pages 35-45.
    • Handle: RePEc:eee:trapol:v:121:y:2022:i:c:p:35-45
    DOI: 10.1016/j.tranpol.2022.03.012
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    References listed on IDEAS

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    1. Jeronimo Esteve-Perez & Antonio Garcia-Sanchez, 2015. "Cruise market: Stakeholders and the role of ports and tourist hinterlands," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 17(3), pages 371-388, September.
    2. Jing Wang & Dong Yang & Kaimin Chen & Xiaodong Sun, 2021. "Cruise dynamic pricing based on SARSA algorithm," Maritime Policy & Management, Taylor & Francis Journals, vol. 48(2), pages 259-282, February.
    3. Sadka, Joyce C. & Yi, Kei-Mu, 1996. "Consumer durables, permanent terms of trade shocks, and the recent US trade deficits," Journal of International Money and Finance, Elsevier, vol. 15(5), pages 797-811, October.
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