A Literature Review: Impact of Covid-19 Pandemic on Saga Cruises Sales

This literature review investigates the impact of the Covid-19 pandemic on Saga Cruises' sales and business performance, utilizing secondary data sources such as books, articles, and journals. The review identifies the challenges faced by Saga Cruises, including decreased customer numbers and reduced sales, due to lockdown restrictions and fear of travel. It further examines effective strategies employed by the company to improve sales performance, such as offering discounts, ensuring passenger safety and health, and creating a positive working environment. The review also discusses the application of models like the Ansoff Matrix (market penetration, product development, market development and diversification) and the 4 P's of marketing (Product, Price, Place and Promotion) to enhance sales. The analysis concludes that while Covid-19 significantly impacted Saga Cruises, strategic interventions focused on customer needs and safety are crucial for recovery and growth. Desklib provides access to similar solved assignments and past papers for students.

LITERATURE REVIEW
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ABSTRACT
Main purpose of this literature review is to identify the impact of Covid 19 pandemic on
sales and business performance of an organisation. Covid 19 is a pandemic situation that has
direct effects over sales along with business performance of Saga Cruises. Within this research,
secondary sources of data collection are used for collecting in-depth information regarding the
ways used by Saga Cruises for overcoming the impact of Covid 19 on their sales performance.
These sources are books, articles, publication research, journals and many others. Different
graphs are used for presenting data that turn to impacted in accomplishing research aim and
objectives in successful manner. Main finding of this research is the impact of Covid 19 is
decreased from the sales performance of Saga Cruises. The conclusion of this research is aim and
objectives are accomplished through the use of books, journals and many others secondary
sources.
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Table of Contents
ABSTRACT.....................................................................................................................................2
INTRODUCTION ..........................................................................................................................4
PRESENTATION OF DATA.........................................................................................................5
How Covid 19 has impacted over the sales of Saga Cruises?.....................................................5
What are the effective strategies that would be used by Saga Cruises for improving their sales
performance?...............................................................................................................................5
PRESENTATION OF MODELS AND THEORIES .....................................................................7
DISCUSSION .................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Covid 19 is a pandemic situation that has impacted on an individual life, business
performance, industry growth and hit the economic growth of economy. Saga Cruises is a chosen
case study within a current literature review. Saga Cruises is also known as Saga shipping that
was founded in 1996 and headquartered in Folkestone, England. Saga Cruises is specialising in
producing Cruises and holiday services to the customers. There are certain issues faced by Saga
Cruises in the period of Covid 19 such as decreased number of customers, reduced business
performance, decreased sales and many others (Rius and Gassiot-Melian, 2021). These are main
issues faced by Saga Cruises and for overcoming these, current research or study is conducted in
systematic and successful manner.
Aim: To identify the impact of Covid 19 pandemic on sales and business performance of an
organisation: A study on Saga Cruises
Objectives:
 To determine the impact of Covid 19 on sales of Saga Cruises
 To evaluate the ways used by Saga Cruises for overcoming the impact of Covid 19 on
their sales performance
 To examine the strategies that would be used by Saga Cruises for improving their sales
performance
Questions
 How Covid 19 has impacted over the sales of Saga Cruises?
 What are the effective strategies that would be used by Saga Cruises for improving their
sales performance?
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PRESENTATION OF DATA
How Covid 19 has impacted over the sales of Saga Cruises?
As per the viewpoint of Antonellini (2021), there is a huge impact of COVID 19 on the
sales of Saga Cruises due to which the profitability and productivity of business decreases.
British Cruise and travel company saga faces various challenges in pandemic due to which they
have experienced and increase in near term cancellation. Government also announced lockdown
restriction which influence the sale and profitability of Saga cruise. The forward passenger
booking for Saga Cruise gets down which significant create an impact on the performance of
company (McCormick, 2021). Global pandemic has created a great impact on the cruise sector
with cancellations and disruption affecting millions of cruise passengers. Saga cruise was
negatively get affected by pandemic due to confined environment onboard and also it increases
the high infection rates among both passengers and crew. Tourist are also fearful of travelling on
cruise ships in pandemic due to which the demand gets decreases. The impact of COVID 19 has
hardly hit the cruise sector due to which it becomes difficult to attract travellers after post
pandemic (Singh and Wang, 2021). Impact of pandemic leads to limited passenger services,
widespread illness and cancellation sailings. The brand has also cut the jobs of employees as they
were facing severe loss. COVID 19 hit also influenced the company to refund its customers.
What are the effective strategies that would be used by Saga Cruises for improving their sales
performance?
As per the viewpoint of Carter and et. Al (2022), there are various strategies which can be
used by Saga cruise in order to improve the sales performance of business. In the tough time of
COVID 19 it becomes difficult for the company to attract and retain customers for improving
their sales performance. In order to boost the sale of Saga cruise, it is necessary to understand the
need and preference of customer (Mateus, 2021). It is important for company to identify the
need and preference of passengers so that they remain satisfied with the brand. The few
strategies which can be used by Saga Cruises are as follows:
Providing discounts:
It is one of the strategy through which Saga cruises can improve their sales performance
and attract maximum number of passengers. Through offering discount on the price after
pandemic can enhance the reputation and sale of business. Saga cruises can also meet their sales
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goals and enhance their productivity (Castaldo, Penco and Profumo, 2021). The discounted
pricing strategy can influence the buying behaviour of customers. Customers generally like to
travel when company offers discounted price on packages.
Ensures Safety and health:
Safety and health is also a practice which must be focused by Saga cruise in order to
attract customers and improve the sales of business. It is important for the company to focus on
the health and safety of passengers so that they can travel in cruise comfortably and safely (He
and et. al., 2020). It is the responsibility of Saga cruise to ensure the safety and health of
employees and customers in order to enhance the sales performance.
Create a positive and safe working environment:
It is also a way through which company can enhance their sales performance and meet
their goals in effective and efficient manner. In the tough tie of pandemic, it is important for
Saga Cruise to focus on creating positive and safe working environment so that employees work
with dedication and give their full potential in order to enhance the business performance
(Kabadayi, O’Connor and Tuzovic, 2020). When employees feel safe in organisation they
contribute their best efforts in accomplishing the goals and objective of business.
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PRESENTATION OF MODELS AND THEORIES
From the above mentioned information, it has been presented that Covid 19 has negative
impact over business performance and sales of Saga Cruises. There are some theories and
models that used for improving sales performance of Saga Cruises. Ansoff Model and 4P’s of
theory is used for improving sales and business performance of Saga Cruises.
Ansoff Matrix:
It is one of the model which helps in facilitating and guiding the business to make
decision effectively and improve the growth of business. The model gives four strategic choices
to business such as market penetration, product development, market development and
diversification.
Market penetration strategy:
Market penetration strategy is one of the growth strategy which can be used by company
in order to grow their market share in present industry. It is the sales driven strategy for the
organisation. Through adopting this strategy, Saga cruise can increase the current product sales
in current market. Cruise industry is the wide industry due to which it becomes necessary for
Saga cruise to penetrate in market by market techniques and running more advertisements. If
organisation uses this strategy they have to focus on introducing new offers, packages and
discussants in order to attract the passengers in post pandemic (Syriopoulos, Tsatsaronis and
Gorila, 2020). Through competitive pricing strategy, company can improve their sales
performance and growth.
Market development:
Market development is another growth strategy which can be used by Saga cruise as it
encourages the business to expand in other market with existing products. Through
implementing this strategy, company focuses on attracting new customer base and also explore
the market either demographically and geographically. Saga cruise can expand their business in
other countries in order to enhance their customer base in pandemic. Market development
strategy mainly include entering international markets, tying up with complimentary companies
and entering new domestic market. Through attracting new customers, the performance and
productivity of business increases.
Product development:
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Product development strategy includes either developing new products or adding new
features to the current product for existing market. In order to improve the sales performance of
Saga Cruise, it is necessary to launch new packages and cruise ships in existing market as it
helps in attracting more and more customer towards the brand due to which the sale of company
also increases. There are few cruise ships who do not offer all the services like travel insurance,
hotel bookings, restaurant, etc.
Diversification:
It is also a strategy which encourages organisation to introduce the new product in new
market. Through implementing this strategy, Saga cruise can diversify their risk to larger areas.
Saga cruise can diversify their services by offering hotel booking and rental facilities (Yazir and
et. al., 2020). It helps in promoting the brand and also improves the sales performance of
organisation.
It is being identified from the above information that company must focuses on
implementing market penetration strategy in order to improve the sales performance of business.
Through implementing this strategy, Saga cruise can promote their services in existing market by
offering discounts and other facilities to passengers.
4 P's
Product:
The product and services which are provided by Saga cruise are car insurance, travel
insurance, food and beverages, pool areas and many others. In order to improve the sales
performance of company, it is necessary to launch new product and services in market.
Price:
Saga cruise follows premium pricing strategies in which customers have to pay extra for
things such as WIFI, onboard gratuities and chauffer service of port, etc. The cruise offers
fantastic value to passengers which helps in gaining their loyalty.
Place:
The headquarter of Saga Cruise is in England, they also provide their ship services in
different countries such as UK and many others.
Promotion:
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Saga cruise also runs promotional activity in order to create strong presence in market
and attract more and more customer towards the brand. They generally promote their brand
through magazines.
DISCUSSION
It is being analysed from the above formation that Saga cruise faces various problems due
to pandemic which influences their profitability and growth. COVID 19 has badly hit the
performance of company due to which the sales and productivity of business decreases. The
government also imposed lockdown and restrict the travelling. Saga cruise has faced various
challenges due to COVID 19 as they were facing issues related to refund and cancellation. It
becomes difficult for the company to refund the price money of bookings in pandemic. Thus, it is
important for Saga cruise to attract and retain the passengers in order to improve the sales
performance of business. Company can improve the business by fulfilling the need and
preference of passengers and ensures their health and safety (Yu, Park and Hyun, 2021). The
priority of Saga cruise must be health and safety of passengers so that the profitability and sale of
business increases. Organisation is also responsible for creating safe working environment for
employees by offering them safety gadgets, PPE Kits and sanitiser facility while working in
cruise so that they can reduce the spread of disease and also ensures the safety of passengers.
Saga cruise must also focus on taking people first approach and also conduct regular one to one
meetings with each team members in order to discuss the problems and issues which are faced by
employees while working in pandemic.
CONCLUSION
From the above mentioned information, it has been concluded that Covid 19 is a major
problem faced by Saga Cruises. In this situation, the company has reduced their sales, reduced
business performance, decreased number of customers and many others. These are major issues
or problems faced by Saga Cruises during the situation of Covid 19. In order to overcome the
impact of Covid 19, there are various insurance policies designed by Saga Cruises. These are car
insurance, home insurance, travel insurance, health insurance, landlord insurance and motorhome
insurance. These are main insurances that followed for overcoming the impact of Covid 19 on
their business performance and also on the customers. This helped Saga Cruises in increasing
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number of customers that leads to improve sales as well as business performance of Saga
Cruises.
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REFERENCES
Books and Journals
Antonellini, L., 2021. IMPACT OF COVID-19 ON THE CRUISE INDUSTRY. JOURNAL OF
TOURISM. RESEARCH, p.5.
Carter, D. and et. al., 2022. The stock price reaction of the COVID-19 pandemic on the airline,
hotel, and tourism industries. Finance Research Letters, 44, p.102047.
Castaldo, S., Penco, L. and Profumo, G., 2021. Cruising in the COVID-19 pandemic era: does
perceived crowding really matter?. International Journal of Contemporary Hospitality
Management.
He, Q. and et. al., 2020. The impact of COVID-19 on stock markets. Economic and Political
Studies, 8(3), pp.275-288.
Kabadayi, S., O’Connor, G.E. and Tuzovic, S., 2020. The impact of coronavirus on service
ecosystems as service mega-disruptions. Journal of Services Marketing.
Mateus, A.L.V., 2021. Sustainability in the cruise industry: The case of listed
companies (Doctoral dissertation).
McCormick, E., 2021. Post-COVID Recovery of the Cruise Industry (Doctoral dissertation,
Brandeis University).
Rius, J.M.E. and Gassiot-Melian, A., 2021. Has COVID-19 had an impact on prices? The case of
the cruise industry. Journal of Revenue and Pricing Management, pp.1-15.
Singh, A.J. and Wang, B., 2021. Impact of COVID-19 on the Hospitality Industry and
Implication for Operations and Asset Management. Accounting & Finance.
Syriopoulos, T., Tsatsaronis, M. and Gorila, M., 2020. The global cruise industry: Financial
performance evaluation. Research in Transportation Business & Management, p.100558.
Yazir, D. and et. al., 2020. Effects of COVID-19 on maritime industry: a review. International
maritime health, 71(4), pp.253-264.
Yu, J., Park, J. and Hyun, S.S., 2021. Impacts of the COVID-19 pandemic on employees’ work
stress, well-being, mental health, organizational citizenship behavior, and employee-
customer identification. Journal of Hospitality Marketing & Management, 30(5), pp.529-
548.
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