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Chinese Journal of Management Science ›› 2022, Vol. 30 ›› Issue (1): 196-205.doi: 10.16381/j.cnki.issn1003-207x.2020.0853

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A Model of Cruise Cabin Allocation and Pricing Based on Revenue Management

ZHAO Li-xiang, XIE Zi-yi, YANG Yong-zhi, GAO Zhen-di, JI Ming-jun   

  1. School of Transportation Engineering, Dalian Maritime University, Dalian 116026, China
  • Received:2020-05-12 Revised:2020-12-01 Online:2022-01-20 Published:2022-01-29
  • Contact: 计明军 E-mail:jmj@dlmu.edu.cn

Abstract: The world cruise tourism industry has been developing rapidly in the past 50 years. As a kind of leisure tourism with high fixed cost, how to make cruise companies obtain higher profits in limited voyages has attracted only a small number of scholars to study. Cruise industry has the same typical revenue management characteristics as hotel and aviation industry. Whether the cruise industry can achieve the same success as hotel and aviation industry by using revenue management theory to improve the income of cruise companies remains to be studied.Based on the idea of revenue management, the issue of cruise cabin allocation and pricing is studied. Combined with the personalized characteristics of the cruise operations, such as the diverse composition of consumer groups, a longer pre-sale cycle and the limitation of the number of life-saving seats and child care staffs.(1)Without loss of generality, an integer programming model was established to determine the quantity and price of various cabin types for sale in different pre-sale stages in the pre-sale cycle, in order to maximize the profit of the cruise company. (2) Because the traditional pre-sale system only records the actual pre-sale data, it does not consider the demand that has arrived but has not been met, that is, the part whose demand is greater than the number of cabin booking limits are subject toType-ΙCensoring. In order to obtain the deterministic demand data and apply it to the model proposed in this paper, an EM algorithm based on Weber distribution is designed to solve the unconstrained estimation of demand involved in the model. The accuracy and convergence of the algorithm are proved by numerical examples.(3) This paper compares the integer programming model and the traditional unified pricing model, and compares their ability to improve revenue. The two models use the same demand data, and the results show that the proposed integer programming model can obtain higher revenue and show a significant annual growth trend. In summary, the research in this paper can provide a scientific decision-making tool for the operation and management of cruise companies.

Key words: cruise;revenue management;cabin allocation;pricing;integer programming;EM algorithm

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