Revenue Management of Gondolas

919 WordsNov 29, 20114 Pages
Revenue Management of Gondolas: Maintaining the Balance between Tradition and Revenue In this case the service is basically based on transportation of people through a gondola with gondoliers. In the past, it was used for only transportation; however, nowadays it is used for tourism activities as well. Almost all tourists who come to Venice, their main purpose is taking a tour with the gondolas. During Carnivals and Christmas, and also in summers the demand is at the highest level. People generally buy this tour as a package that the tour operators sold and mostly they don’t know what the real price is for taking tour with gondolas. On the other hand, people get the service through the hotel that they stay in or they can buy it directly…show more content…
When we think about what we should do for the revenue management, first of all we should think about the idea that the demand which we have at different times of the day, of the month and of the year as well. Secondly, we should set different prices for different times. Lastly, we should try to identify who are those customers that are price sensitive, and who are those customers that are not price sensitive, and that are willing to pay higher prices. Different prices for different people at different prices must be applied for this issue. When we segment our market and set different prices for the people from different segments. For instance, in Christmas the price may be higher than other days in winter. The rate shouldn’t be fixed for all days in the year. Lastly, it is needed to set fences that are barriers so that one customer can’t jump to another class. This means that different customers are charged differently for what is actually the same product. TRM 361 SERVICE MARKETING CASE REPORT REVENUE MANAGEMENT OF GONDOLAS: MAINTAINING THE BALANCE BETWEEN TRADITION AND REVENUE BESTE ERDAL 2008500021 -------------------------------------------- [ 1 ]. Lovelock Christopher, Essentials of Service Marketing, Page:147 [ 2 ]. Lovelock Christopher, Essentials of Service

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