Day Cruise Price Optimization for Viking Line Estonia
Mäemets, Maiken (2017)
Metropolia Ammattikorkeakoulu
2017
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2017121521578
https://urn.fi/URN:NBN:fi:amk-2017121521578
Tiivistelmä
The target of this thesis was to find the best pricing model for Viking Line Estonia’s day cruises. The target company represents Viking Line’s third largest market after Finland and Sweden and the entire market-area includes Estonia, Latvia and Lithuania. The pricing model considers the dynamic pricing model of one-way trips, the fixed prices of campaigns and optimizes the day cruise pricing with regards to one-way trips.
The study was based on a simple data analysis in three different data stages, the first data stage being the current state analysis based on information on actual customer data and trips they have taken during the years 2014-2016. The second data stage was based on a workshop between the sales department and revenue management where the different options were analysed and further tested. The final proposal was based on both the work-shop and financial calculations. This thesis also looked at best practice models from Viking Line Finland and the biggest competitors Tallink and Eckerö Line.
By analysing the different test periods and how the price changes the passenger’s behaviour, the thesis came to an optimized pricing model that is comparable to the main products of the company, route trips.
Finally the thesis presents a proposal for a dynamic pricing system that will help the target company implement it for Viking Line Estonia’s day cruise products. The author recommends implementing the system as soon as possible and use “up to” –discounting in order to reach the most acceptable prices for the relevant market.
The study was based on a simple data analysis in three different data stages, the first data stage being the current state analysis based on information on actual customer data and trips they have taken during the years 2014-2016. The second data stage was based on a workshop between the sales department and revenue management where the different options were analysed and further tested. The final proposal was based on both the work-shop and financial calculations. This thesis also looked at best practice models from Viking Line Finland and the biggest competitors Tallink and Eckerö Line.
By analysing the different test periods and how the price changes the passenger’s behaviour, the thesis came to an optimized pricing model that is comparable to the main products of the company, route trips.
Finally the thesis presents a proposal for a dynamic pricing system that will help the target company implement it for Viking Line Estonia’s day cruise products. The author recommends implementing the system as soon as possible and use “up to” –discounting in order to reach the most acceptable prices for the relevant market.