Revenue management software (RMS) and service supplier, IDeaS Revenue Solutions, has expanded its suite of revenue management solutions to the cruise industry through a partnership with Virgin Voyages.
Under this partnership arrangement, IDeaS is working with Virgin Voyages to develop a first-of-its-kind RMS solution for the cruise industry.
To fully realise their revenue potential, cruise line operators need the tools to efficiently and effectively forecast passenger demand.
Historically, this forecasting posed challenges for a variety of reasons. But with a clearer understanding of this demand, the door opens to transformative, sophisticated pricing and revenue management strategies, IDeaS said.
Virgin Voyages and its revenue management team saw the importance of science driven automation. As a result, IDeaS was approached and a proof of concept outlined.
Key benefits of this partnership include:
- Power of forecast modelling: IDeaS delivers forecast modelling to determine more efficiently the right booking curve so cruise lines or commercial teams can more dynamically adapt to trends.
- Forecasting and pricing automation: IDeaS revenue science streamlines cabin pricing, automates processes, and allows individual cruise lines to focus on demand-based forecasting and pricing for each cabin type (i.e. inside, balcony, suites, etc.). By optimising business mix and inventory allocation, the solution helps to maximise revenue potential and future scalability.
- Buy versus build: The modern enterprise is plagued by the decision of whether to build custom software or buy a commercial off-the-shelf solution. Previously, it has been the norm for cruise lines to build their own systems internally.
IDeaS claims to provide a solution that delivers the speed and scalability that a homegrown system can’t. By working with the company, which has existing revenue optimisation models (customised for each client), cruise lines that need specific functionality can now realise higher ROI and faster time to market.
Jessica Fleisher, Vice President Revenue, Virgin Voyages, said, “We came to IDeaS because we saw the power of science driven automation and the results delivered to the hotel industry.
“Today, nothing in our market can compare to the power of IDeaS revenue management expertise. We couldn’t be more pleased with the project’s development thus far and are impressed with the entire organisation’s commitment.
“As a visionary in the cruise industry, we see the value of sophisticated revenue management, so it was only fitting we should partner with the pioneer of RMS technology,” she said.
Sanjay Nagalia, Co-Founder and Chief Scientist, IDeaS, added, “IDeaS is excited to work with Virgin Voyages, as we make this proof of concept a reality. This collaboration not only marks our entry into the cruise industry but also demonstrates our commitment to expanding our expertise into new verticals.
“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. We couldn’t be prouder to work with this exciting and forward thinking team,” he said.
