Revenue management system provider IDeaS Revenue Solutions has paired up with Virgin Voyages to bring a new RMS solution to the cruise sector.
“We came to IDeaS because we saw the power of science-driven automation and the results delivered to the hotel industry,” said Jessica Fleisher, vice president of revenue for Virgin Voyages.
Forecasting passenger demand, historically, has posed challenges for the cruise industry.
"In the cruise industry, revenue optimization extends far beyond simply selling accommodations - it encompasses the entire purchase journey, including pre-cruise purchases and onboard spend,” Fleisher said.
“This makes maximizing revenue about more than just filling the ship; it’s about optimizing every touchpoint.”
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Cruises, she added, have long booking windows that often run up to two years. As is such, understanding the demand curve - including peaks and dips - is as important as understanding demand as a whole. The goal is to launch new itineraries at ideal prices and then to match demand levels by adjusting rates.
And demand varies based on source market and segment, Fleisher said. She gave an example: A tour operator in the United Kingdom will experience different demand in January for Caribbean voyages than an online travel agency based in the United States would.
“The IDeaS platform will help us manage this complexity by performing micro-demand forecasts every day, for every sailing, and for every cabin type,” she said.
“It recommends pricing strategies based on these forecasts, allowing us to meet demand and maximize total revenue in ways that simply aren't possible today."
The solution is intended to help cruise lines adapt to booking shifts more quickly and automate cabin pricing.
“This collaboration not only marks our entry into the cruise industry but also demonstrates our commitment to expanding our expertise into new verticals,” said Sanjay Nagalia, co-founder and chief scientist at IDeaS.
“By helping them gain key insights into dynamic forecasting and pricing, we believe we will help usher in a new era for the entire cruise industry.”