Gondola Case Analysis

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Individual Case study A: 4 BMA258 Services Marketing 2015 Simon Martin 077915 Individual Case study A: 4 BMA258 Services Marketing 2015 Simon Martin 077915 Contents Introduction 1 Body 2 Conclusion 4 References 5 Introduction This report will provide information obtained through a case study, regarding the revenue management of gondolas. The report, will pay particular attention to the capacity of gondolas, revenue impacts, revenue maximisation and the difficulties whilst trying to balance heritage and culture, pricing structure, and will highlight recommendations and customer’s reactions. The report will contain definitions, strategies and theories gathered from relevant marketing texts. Body Case facts The case…show more content…
Lovelock (2015, p.193) states that “the primary capacity constraint is likely to be defined in terms of such furnishings as beds, rooms or seats,” Indicating the source of the problem. The solution, redesign, increases the limit of passengers thus increasing capacity. An adjustment strategy used to oversee this implementation is known as chasing demand. The action to be used from strategy would be one Lovelock (2015, p.195) defines as “Schedule of downtime during periods of low demand”. During this period, the Gondolas could undergo the redesign, construction and modification, ensuring the demand can be met at its highest periods. Another strategy if the redesign is not successful is decreasing the allocation of time spent on the ride. This will facilitate demand as the number of rides offered will be increased dramatically. The level of capacity and gained revenue share relationship; one impacts the other. In this case as the level of capacity increases, allowing more passengers, higher revenue can be obtained. Furthermore the result of demand and supply would become more balanced and as operating costs are presumed to be the same; optimum capacity use. Question2 How can you balance revenue maximization with the maintenance of cultural heritage? Is it possible? If so what would you recommend? A business achieving revenue maximisation whilst balancing any other factor must understand complications can be evident.
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