Cruise RM

From a Revenue Management perspective, a cruise operation can either be quite similar to a hotel, or to a tour operator.

If the cruise operator does not take any risk on the flights that get the passengers to the port of embarkation, and it doesn't allow passengers to join or leave along the way, then the RM challenge is much like a hotel's or even casino's RM challenge, with added emphasis on ancillary revenues and upgrading or upselling from lower cabin grades to higher ones.

If on the other hand, the cruise operator does get involved in arranging air transport and/or allows passengers to choose their own ports of embarkation and disembarkation, then the network to be optimised becomes quite similar to a tour operator's, again with the added emphasis on ancillary revenues and upgrading and -selling.

This article was published in Guida Viaggi. It is a bit dated now, but it still offers a good overview of what RM for the latter type of cruise operator could look like. Click here to download it.

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