Question

How can you balance revenue maximization with the maintenance of cultural heritage? Is it possible? if so, what would ypu recommend?

Answer 1

Theory oF Revenue Management, Lovelock & Wirtz, Services Marketing, 7th Edition, Pearson, 2011 Revenue Management is value creation as it ensures better capacity utilization and it reserves capacity for higher-paying segments. It is a sophisticated approach to managing supply and demand under varying degrees of constraint in response to the price sensitivity and needs of different market segments at different times. · Revenue Management is most effective when applied to service businesses characterized by : v High fixed cost structure and relatively fixed capacity, which result in perishable inventory. v Variable and uncertain demand. v Varying customer price sensitivity.

Due to the above recall and theory, it is possible to balance the revenue maximization with the maintenance of cultural heritage therefore a well-implemented revenue management strategy must be applied to reconcile yield management practices with customers fairness perception and satisfaction, trust and goodwill for long-term business.

The pros and cons of Gondola rides in today and age

PROS:

• Demand is high
• The city wants to continue Gondola operations
• 3 possible booking points
• Caravan of Gondola effecient in transporting a large amount of tourists

CONS:

●Increase in technology and excess traffic through the water canals

●High cost and excessive build time for 1 Gondola

●Only 400 Gondolas to operate

●Hotels, travel agencies and tour operators take a large percentage of profit.

To balance the revenue maximization with the maintenance of cultural heritage of Gondolas rides our group have some recommendation:

In revenue management:

• Increase nightn tours
• Target key demographics
• Increase training or alleviate restrictions on becoming Gondolier
• Implement scentific management strategies in the manufacturing stage of Gondola
• Increase use of Caravan Gondola tours
• Eliminate middle men at selling point for increase profit margin retain middle men and have a large of customer base

In maintain cultural heritage:

• They can sell seasonal flowers and the gondola can be decorated with those flower once a month
• They can sell artisana souvenirs too (all kind of thing with Gondola shape) in order to create job and emphasize th culture
• At night the Gondola could be decorated with lights thus the trip is going to be more beautful
• In can organize some concert may be weekends. The gondolas can stand in frond of a bridge and enjoy the short concert
• The gondola should be involved in each Venice’s festival or important event