Two-sided markets are characterized by having an intermediary and two groups of end-users. In the cruise\nmarket, the cruise line plays the role of intermediary to connect cruise tourists and cruise ports. In our theoretical\nmodeling, we find that the cruise line might be a hybrid intermediary, selling its own ship-based products and\nservices, and also offering a platform to connect cruise tourists and cruise ports. This distinctive business model is\nalso reflected in the pricing scheme, whereby cruise ports charge an entry fee from the cruise lines and port dues\nfrom the cruise tourists. This is because of an industrial organization in which the upstream providers (cruise ports)\nhave some bargaining power over both the downstream consumers (cruise tourists) and the intermediaries (cruise\nlines). From the view of two-sided markets, the cruise port as one end-user needs to get on board the platform of\nthe cruise lines, in order to have transaction with the other end-user, the cruise passengers. In our study, a quasitwo-\nsided cruise market and a hybrid intermediary might exist in the cruise market, both of which are significantly\nvaluable for the strategies of the cruise lines and the cruise ports. In the context of the Asian cruise markets, cruise\nports are pursuing active strategies, utilising the platforms of the cruise lines and adapting to the demand of cruise\ntourists. So, the cruise line is regarded as the platform, and its optimization is influenced by the subsidy from the\ncruise ports. The study offers a provisional test of this idea on Japanese ports. The results are rarely significant and\ncall for further empirical research.
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