As head of Deployment, you have the strategic responsibility to plan your company’s future allocation of ships to trades. Each decision can have the impact of millions of dollars, as having your ships in the high demand trades can greatly enhance revenues, but having ships in the wrong trades will leave you with many unsold cabins. Repositioning your ships has a cost, so it must be methodical. Competitors must also factor into your decisions, whether they reposition a ship, increase / reduce capacity in a trade, start in a trade a week sooner than previously, etc. will impact you. What if you could easily assess a multitude of different scenarios, understanding the impacts of competitor decisions, economic impacts of your own decisions and how they interact? By making strategic decisions based on analytics rather than gut feel, you can increase revenue and reduce the risk.
As a cruise sales executive, almost everyone in the world is a potential customer. However, exchange rates can play havoc with your revenues, so you must be smart and strategic. Sourcing from the wrong markets can lead to a revenue shortfall but pulling out of a market may be a short-term gain for a longer-term detriment. Customers are unique, some with willingness to trade off price and ticket restrictions. So, what should be the relationship between standard and restricted fares? Should you be locking the revenue in earlier in the booking horizon with more restrictive fares or is there opportunity to get better rates later in the booking cycle and not have empty cabins at the end? What if you could have the insights in these areas to course correct and go in the right direction?
As a cruise executive, groups are an integral part of your business and you must decide which group agents to use and what mix of groups need to be targeted on the different voyages. Agents get a large allocation of cabins, but how much will they fill and how much inventory will be returned to you. If you allocate too much inventory to groups, then you may end up turning away higher yielding FIT business. If you allocate too little or the agents conversion rate is too low, then you end up with empty cabins that may have to be discounted late in the booking cycle. What if you had the confidence in knowing the group mix you needed for a voyage? What if you knew how much each group would convert? Knowing these potential unknowns will help to maximize your bottom line.
At the center of your revenue activities is Revenue Management, where you must have core technologies to accurately forecast both individual / group demand and understand price elasticities, so you can adjust pricing, accounting for on the books (OTB) retention, balancing demand between fare types and managing overbooking with confidence. Your extended booking horizon creates different intervals of customer behavior. This means you must understand how price sensitivity changes of your customers varies the entire booking horizon, so the current and future pricing strategies must be considered together. And if you have price guarantees, then the retro dilution become a consideration of any decision to reduce price. Then, once you have established these foundational strategies, you must react to the increasingly competitive marketplace of both the number and size of ships, so revenue opportunities don’t pass you by. With so much to consider, are you overwhelmed by too much data to understand what is truly critical or paralyzed by all the analysis? What if you had more confidence in making these price decisions? What if you could sell the right cabin or fare type to the right customer, at the right time, for the right price?
Managing the inventory of your voyages is equally critical to your revenue success as is managing pricing. Ship capacities and safety limits are hard constraints that must be adhered to, so optimal use of both your lower and upper berths is critical. Selling limits must be maintained and optimized across the different metas and categories to effectively implement pricing strategies. And with many voyages being part of voyage networks, opportunities exist to shift capacity between the various physical and logical network voyages to better align supply and demand. However, maintaining control of all the inventory settings, shifts and opportunities is a daunting task. What if you had the knowledge of which were the important areas to focus on? What if you could better coordinate your pricing and inventory decisions? And what if this coordination was occurring across your fleet every day? Then you would be managing your inventory to maximize your revenue.
The world is cluttered with customer loyalty programs that miss the mark and create momentous risks because customers now expect rewards – from everyone. How do you ensure your teams are nurturing the right customers? How do you identify up and coming customers or the ones that are at risk? How do you convert loyalists from your competitors? Do you know what type of return you are getting on your Rewards and loyalty investment dollars? By applying analytical models to identify unique buying insight behaviors, these insights then can help inform distinctive strategies that drive the right behaviors to ensure you are maximizing one of your most valuable assets – your guests.
Your cruising customers are primarily leisure travelers, looking to enjoy their time away and sampling fresh experiences. From shore excursions, on-board attractions, restaurant upsells, spas, pre / post cruise packages, you have numerous opportunities to help provide these experiences. How do you target the right offers to the right cruisers? How do you know what is the appropriate price or the appropriate bundle of items to catch their eye and an additional share of their wallet? What if there were analytics that helped you understand how to price your shore excursions, so that the customers booked activities through the cruise line instead of doing their own thing at the port? What if you knew which set of options across multiple ports could be bundled together to incent the customers to engage in activities at more of the ports? You can know this and sell these additional experiences to the on-board customers and increase your revenues, while helping the cruisers have the time of their life.
Change is hard, but it doesn’t have to be, but we can make it easy for you. After all, if your product (or service) has a price, you can use Revenue Management. That said, we bring deep industry expertise, and can help you solve for the unknowns. Click the button below to ignite change within your organization.Get Started