Moving Ferries Up‐market
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 1 May 1990
Abstract
Going up‐market is a strategy often proposed for the ferry industry to compete with the Channel Tunnel. In 1984, Sealink spent £6 million on a luxury service to Jersey and Guernsey, replacing a previous high volume/low yield marketing approach. Many criticisms can be made in retrospect of the marketing and pricing tactics used, which contributed to the £11 million loss incurred in the first year. However, given a direct choice between comfort and cost‐savings, most customers chose the latter. In the light of this experience the author argues that reinvestment in luxury ferries on the short sea routes to retain business in the face of competition will need to be financed by staff cost reductions rather than price increases.
Keywords
Citation
Morgan, M. (1990), "Moving Ferries Up‐market", International Journal of Physical Distribution & Logistics Management, Vol. 20 No. 5, pp. 25-31. https://doi.org/10.1108/EUM0000000000365
Publisher
:MCB UP Ltd
Copyright © 1990, MCB UP Limited