Revenue Management in the cruise ferry industry is beginning to get recognition as a critical component of overall business strategy in order to enhance revenue. It is estimated that the revenue potential to be gained using Revenue Management can vary from 4 to 11%. Cruise ferry operators need to optimally allocate inventory among competing resources like passengers, vehicles and cabins in order to maximize revenue. There is also a strong need to determine the optimal deck configurations based on demand for passenger and vehicle space in order to maximize revenue and vessel utilization rate of each sailing. In these times of shrinking margins on base fares, cruise ferries are looking at every single opportunity to supplement revenues through sale of ancillary services. The challenge with automated revenue management systems is to ensure it caters to the business policies of your cruise ferry operations and not just focus on theoretical optimal revenues. Cruise Ferry operators are also beginning to understand the negative impact of traditional Revenue Management principles on sailings with simplified fares and no restrictions and are looking to leverage the price sensitive revenue management practices that are now widely employed in the airline industry.
While experienced cruise ferry companies have recognized the revenue generating potential of an automated revenue management system, other operators have relied on manual processes owing to the cost associated with an automated Revenue Management system. However it is imperative that these operators adopt automated Revenue Management systems in order to enhance revenue, maximize profitability and remain competitive a.