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  • The market: demand and supply, Operations: capacity 

Click to read the article below and then answer the questions:

Cruise operators see brighter horizon as vaccines spur bookings

  • Draw a demand and supply diagram to illustrate the change in the market for cruise bookings

  • Assess the impact of the increase in bookings for cruises on the cash flow of cruise operators 

  • Analyse one consequence for cruise lines, if they decide to operate at below full capacity, when the industry reopens

  • “The three largest listed operators have raised almost $40bn in debt and equity since March”. Assess the likely impact to a cruise line operator of using debt as a source of finance

  • “After every major economic downturn or collapse or pandemic, the aftermath and the reaction from the population is to be bullish, to enjoy and to spend.” Evaluate the impact of consumer confidence on the revival of the cruise industry 

Peter McGinn, Harton Academy

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