Abstract
This study examines private entry strategies and internationalization patterns in the cruise terminal industry. The focus is on the second biggest cruise region in the world, the Mediterranean and its adjoining seas. A database detailing the ownership structures observed in cruise terminals in 18 different countries forms the backbone of the empirical analysis. This dataset details the entry strategies and implementation options of cruise terminal operators, their corporate features and strategies, and the emerging partnership dynamics. Methodologically, our analysis is based on earlier constructs used to conceptualize entry forms and strategic management in container terminals and port governance systems. The findings suggest that cruise terminals are subject to an initial phase of privatization and internationalization. The outcomes point to the emergence of international cruise terminal operators and the active presence of cruise lines and other types of entities (including port and shipping companies, shipping agents, and Chambers of Commerce). While the cruise terminal development path shows some similarities with what happened in container ports a few decades ago, an array of differences also emerge.
Similar content being viewed by others
References
Boddewyn, J.J., M. Baldwin Halbrich, and A.C. Perry. 1986. Service multinationals: Conceptualization measurement and theory. Journal of International Business Studies 17 (3): 41–57.
Brida, J.G., M. Pulina, E. Riaño, and S.Z. Aguirre. 2013. Cruise passengers in a homeport: A market analysis. Tourism Geographies 15 (1): 68–87.
Brooks, M.R., and K.P.B. Cullinane. 2007. Devolution, port performance and port governance. Oxford: Elsevier.
Brooks, M.R., K.P.B. Cullinane, and A.A. Pallis. 2017. Revisiting port governance and port reform: A multi-country examination. Research in Transportation Business & Management 22: 1–10.
Brooks, M.R., and A.A. Pallis. 2014. Port governance. In The Blackwell companion to maritime economics, ed. W. Talley, 491–516. Oxford: Wiley.
Brouthers, K.D., L.E. Brouthers, and S. Werner. 2008. Real options, international entry mode choice and performance. Journal of Management Studies 45 (5): 936–960.
Cruise Industry News. 2017. 2015–2016 state of the industry annual report. New York: Cruise Industry News.
Cruise Lines Industry Association (CLIA). 2016. Year in review. Brussels: CLIA.
De Langen, P.W., and A.A. Pallis. 2007. Entry barriers in seaports. Maritime Policy & Management 34 (5): 427–440.
Debrie, J., E. Gouvernal, and B. Slack. 2007. Port devolution revisited: The case of regional ports and the role of lower tier governments. Journal of Transport Geography 15 (6): 455–464.
Della Croce, R., and S. Gatti. 2014. Financing infrastructure—International trends. OECD Journal: Financial Market Trends 1: 123–138.
Di Vaio, A., F.R. Medda, and L. Trujillo. 2011. An analysis of the efficiency of Italian cruise terminals. International Journal of Transport Economics 38 (1): 29–46.
Erramilli, M.K. 1992. Influence of some external and internal environmental factors on foreign market entry mode choice in service firms. Journal of Business Research 25 (4): 263–276.
Erramilli, M.K., and C.P. Rao. 1990. Choice of foreign market entry modes by service firms: Role of market knowledge. Management International Review 30 (2): 135–150.
Esteve-Perez, J., and A. Garcia-Sanchez. 2017. Characteristics and consequences of the cruise traffic seasonality on ports: the Spanish Mediterranean case. Maritime Policy & Management 44 (3): 358–372.
Folta, T.B. 1998. Governance and uncertainty: The trade-off between administrative control and commitment. Strategic Management Journal 19 (11): 1007–1028.
Gui, L., and A.P. Russo. 2011. Cruise ports: a strategic nexus between regions and global lines: Evidence from the Mediterranean. Maritime Policy & Management 38 (2): 129–150.
Jones, P., D. Comfort, and D. Hillier. 2016. Sustainability and the world’s leading ocean cruising companies. Journal of Public Affairs. Published in Wiley Online Library. doi:10.1002/pa.1609.
Klein, R.A. 2011. Responsible cruise tourism: Issues of cruise tourism and sustainability”. Journal of Hospitality and Tourism Management 18 (1): 107–116.
Lam, J.S.L., and T. Notteboom. 2014. The greening of ports: a comparison of port management tools used by leading ports in Asia and Europe. Transport Reviews 34 (2): 169–189.
Lau, Y.Y., K.C. Tam, A.K.Y. Ng, and A.A. Pallis. 2014. Cruise terminals site selection process: An institutional analysis of the Kai Tak Cruise Terminal in Hong Kong. Research in Transportation Business and Management 13: 16–23.
Lee, G., and M.K. Lee. 2017. Estimation of the shore excursion expenditure function during cruise tourism in Korea. Maritime Policy & Management 44 (4): 524–535.
Li, P.P. 2007. Toward an integrated theory of multinational evolution: The evidence of Chinese multinational enterprises as latecomers. Journal of International Management 13 (3): 296–318.
Luo, Y. 2001. Determinants of entry in an emerging economy: A multilevel approach. Journal of Management Studies 38 (3): 443–472.
Mathews, J.A. 2006. Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management 23 (1): 5–27.
MedCruise. 2016. Ports together. Piraeus: MedCruise.
MedCruise. 2017. MedCruise statistics 2016. Piraeus: MedCruise.
Notteboom, T. 2007. Concession agreements as port governance tools. Research in Transportation Economics 17: 449–467.
Notteboom, T., and J.-P. Rodrigue. 2012. The corporate geography of global terminal operators. Maritime Policy & Management 39 (3): 249–279.
Notteboom, T., and W. Winkelmans. 2001. Structural changes in logistics: how will port authorities face the challenge? Maritime Policy & Management 28 (1): 71–89.
Notteboom, T., A.A. Pallis, P.W. de Langen, and A.A. Papachristou. 2013. Advances in port studies: The contribution of 40 years maritime policy and management. Maritime Policy & Management 40 (7): 636–653.
Notteboom, T., A.A. Pallis, and S. Farrell. 2012a. Terminal concessions in seaports revisited. Maritime Policy & Management 39 (1): 1–5.
Notteboom, T., P. Verhoeven, and M. Fontanet. 2012b. Current practices in European port on the awarding of seaport terminals to private operators: Towards an industry good practice guide. Maritime Policy & Management 39 (1): 107–123.
Olivier, D. 2005. Private entry and emerging partnerships in container terminal operations: Evidence from Asia. Maritime Economics & Logistics 7 (2): 87–115.
Olivier, D., F. Parola, B. Slack, and J. Wang. 2007. The time scale of internationalization: The case of the container port industry. Maritime Economics & Logistics 9 (1): 1–34.
Pallis, A.A., T. Notteboom, and P.W. de Langen. 2008. Concession agreements and market entry in container terminals. Maritime Economics and Logistics 10 (3): 209–228.
Pallis, A.A., T.K. Vitsounis, P.W. de Langen, and T. Notteboom. 2011. Port economics, policy and management: Content classification and survey. Transport Reviews 31 (4): 445–471.
Pallis, A.A. 2015. Cruise shipping and ports. Cruise shipping and urban development state of the art of the industry and cruise ports. OECD-ITF Discussion Paper 2015–2014, OECD: Paris.
Pallis, A.A., and K.P. Arapi. 2016. A multi-port cruise region: Dynamics and hierarchies in the med. Tourismos 11 (2): 168–201.
Pallis, A.A., J.P. Rodrigue, and T.E. Notteboom. 2014. Cruises and cruise ports: Structures and strategies. Research in Transportation Business and Management 13: 1–5.
Parola, F., and E. Musso. 2007. Market structures and competitive strategies: The carrier-stevedore arm-wrestling in Northern European ports. Maritime Policy & Management 34 (3): 259–278.
Parola, F., T. Notteboom, G. Satta, and J.P. Rodrigue. 2013a. Analysis of factors underlying foreign entry strategies of terminal operators in container ports. Journal of Transport Geography 33: 72–84.
Parola, F., T. Notteboom, G. Satta, and J.P. Rodrigue. 2015. The impact of multiple-site acquisitions on corporate growth patterns of international terminal operators. International Journal of Shipping and Transport Logistics 7 (5): 621–648.
Parola, F., G. Satta, and S. Caschili. 2014. Unveiling co-operative networks and ‘hidden families’ in the container port industry. Maritime Policy & Management 41 (4): 384–404.
Parola, F., G. Satta, L. Persico, and E.D. Bella. 2013b. Entry mode choices in international markets: Examining the antecedents of service firms’ strategies. International Journal of Globalisation and Small Business 5 (1): 34–57.
Peisley, T. 2012. Cruising through the perfect storm: Will draconian new fuel regulations in 2015 change the cruise industry’s business model forever?. Colchester: Seatrade Communications Ltd.
Peisley, T. 2014. End of the beginning for cruising. Colchester: Seatrade Communications Ltd.
Perry, M.K. 1989. Vertical integration: Determinants and effects. Handbook of Industrial Organization, 1989, pp. 183–255, Amsterdam: Elsevier.
Psaraftis, H.N., and A.A. Pallis. 2012. Concession of the Piraeus container terminal: turbulent times and the quest for competitiveness. Maritime Policy & Management 39 (1): 27–43.
Rodrigue, J.P., T.E. Notteboom, and A.A. Pallis. 2011. The financialisation of the terminal and port industry: revisiting risk & embeddedness. Maritime Policy & Management 38 (2): 191–213.
Satta G., F. Parola, and L. Penco. 2017. Cruise lines searching for legitimacy: Stakeholder relationship management and CSR reporting, EURAM Conference 2017, Glasgow (UK).
Satta, G., and L. Persico. 2015. Entry mode choices of rapidly internationalizing terminal operators: The determinants of the degree of control on foreign ventures. Maritime Economics & Logistics 17 (1): 97–126.
Satta, G., F. Parola, and S. Caschili. 2014a. Dealing with uncertainty and volatility in the port industry network: Social and instrumental antecedents of “clique” survival. Maritime Policy & Management 41 (7): 615–633.
Satta, G., F. Parola, and L. Persico. 2014b. Temporal and spatial constructs in service firms’ internationalization patterns: The determinants of the accelerated growth of emerging MNEs. Journal of International Management 20 (4): 421–435.
Smith, H. 2017. Santorini’s popularity soars but locals say it has hit saturation point. The Guardian, 28 August 2017.
Song, D.W. 2003. Port co-opetition in concept and practice. Maritime Policy & Management 30 (1): 29–44.
Soppé, M., F. Parola, and A. Frémont. 2009. Emerging inter-industry partnerships between shipping lines and stevedores: From rivalry to cooperation? Journal of Transport Geography 17 (1): 10–20.
Soriani, S., S. Bertazzon, F.D. Cesare, and G. Rech. 2009. Cruising in the Mediterranean: Structural aspects and evolutionary trends. Maritime Policy & Management 36 (3): 235–251.
Turkisch, E. 2011. Sovereign wealth funds as investors in Africa: opportunities and barriers. OECD Development Centre Working Paper, 303: 1–39.
Vaggelas, G.K., and A.A. Pallis. 2010. Passenger ports: services provision and their benefits. Maritime Policy & Management 37 (1): 73–89.
Wang, G.W., and A.A. Pallis. 2014. Incentive approaches to overcome moral hazard in port concession agreements. Transportation Research Part E: Logistics and Transportation Review 67: 162–174.
World Bank. 2012. Public-private partnerships. Reference guide. The World Bank: Washington, DC.
Author information
Authors and Affiliations
Corresponding author
Additional information
Editor’s Note: Winner of “Best Conference Paper”, International Association of Maritime Economists (IAME) Conference, Kyoto, Japan, June 2017.
Rights and permissions
About this article
Cite this article
Pallis, A.A., Parola, F., Satta, G. et al. Private entry in cruise terminal operations in the Mediterranean Sea. Marit Econ Logist 20, 1–28 (2018). https://doi.org/10.1057/s41278-017-0091-7
Published:
Issue Date:
DOI: https://doi.org/10.1057/s41278-017-0091-7