Gondola Case Analysis Essay

1124 Words Nov 4th, 2015 5 Pages
Individual Case study A: 4
BMA258 Services Marketing 2015
Simon Martin 077915
Individual Case study A: 4
BMA258 Services Marketing 2015
Simon Martin 077915

Introduction 1
Body 2
Conclusion 4
References 5

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.
Case facts
The case
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To effectively apply revenue management inclusions of; high fixed cost structures, fixed capacity, variable and uncertain demand and varying customer price sensitivity. To do this a business must; design price schedules and fences that are clear and logical, building to hide discounts, loyal customer care, and service recovery for overbooking and higher published price and frame fences as discount. These fences as Lovelock (2015, p.176) defines are “either physical or non-physical” and “Physical fences refer to tangible product differences related to the different prices, such as the seat location”. With theory in mind, the balance can be obtain in many different ways. These suggestions are; increasing night tours resulting in revenue increase and cultural heritage experience on grand gondola through the most romantic city. Increased offer of training, providing it to the public and those members who meet the criteria, resulting in gaining the experience and opportunity to become a Gondolier. Selling seasonal flowers and decoration of lights, creating a romantic atmosphere and offering products to be sold in relation will increase revenue and keep cultural heritage.

Question 3
Consider the pricing structure of the gondolas. What sort of changes would you recommend? How would customers react? What revenue impact would your recommendations have?
The current pricing structure of the gondolas show that for each gondola ride with the duration

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