Revenue Management For Cruise

The cruise industry has become one of the fastest growing industries in modern tourism,experiencing more than10%of the growth rate in recent years. Especially,the "RoyalCaribbean marine quantum number" which has been just completed marks that the "floatingin the golden waterway of the gold industry" has entered a new stage of development. Just asthe aviation industry and hotel industry, the cruise industry has all the characteristics of therevenue management industry. In the academia and the business community, the theory andpractice of revenue management has been fully developed in the hotel industry and theaviation industry. however, there are few literatures on the cruise revenue management. Bycomparison, China’s cruise industry has just started, and the development is not mature, whatis worse,we do little on the research of cruise revenue management theory. But with theimprovement of people’s living standard, the huge domestic potential cruise tourism marketgradually emerged, and became the target for many foreign cruise which will stationed in thenear future.In view of various cruise cabin type and level, to realize profit maximization, inventorycontrol and pricing are the key and also an important basis for the cruise company to decideto receive or refuse the request. Based on inventory control and dynamic pricing theory ofrevenue management as well as theoretical analysis and empirical analysis method, thispaper carried out further research on cruise renevue management.As to inventory control and under limiting life seats, we establish two kinds of dynamicprogramming model with discrete time and then carry on the analysis and proof. Undersufficient condition for life seats, we put forward that the marginal expected revenuemonotonicity exists with the variation of the inventory and time age. At the same time, thelegend also illustrates the monotonous existence.According to this monotonicity, we finallygive a series of space and time threshold to decide whether to accept or reject the customerrequest or not.In terms of dynamic pricing and based on the number of passengers and life seats, weestablish two kinds of dynamic programming model with discrete time. Regardless of thenumber of passengers and life seats and based on theory of choice behavior, we proposed theexistence of the uniqueness of the optimal pricing in each stage according to the concave andconvex set theory. At the same time, the difference of optimal pricing and marginalexpectation revenue is constant, and finally this constant gives the expression to calculate the total expected revenue. Then the legends also shows the monotonic relationship between thestock price and inventory and time stage.