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Norwegian: Revenue Management System Helps Booking Curve

  • May 11, 2018

A proprietary revenue management platform at Norwegian Cruise Line has been key to the development of the optimal booking curve, according to a company presentation.

Norwegian said its revenue management strategy starts with deployment, which is the number one driver of pricing. Deployment decisions have helped lead an expansion into premium destinations for the brand.

On premium deployments, the company follows an itinerary-specific port optimization plan, while leveraging its own ports and reviewing and improving the “lowest performing products.”

After deployment and the stateroom mix, Norwegian said staying on an optimal booking curve is the next most important tool for driving pricing as the revenue management system will dynamically optimize each sailings’ booking curve.

As sailings near, the company will make investments in marketing to drive demand.

“Value is now our primary promotional lever, not price,” the company said.

In the big picture, disciplined capacity growth has allowed the company to fill ships and command pricing strength.

One more Breakaway-plus class ship, the Norwegian Encore, follows in 2019. After that, it’s four smaller Leonardo-class newbuilds.

The 3,300-guest ships are slightly smaller, at 140,000-tons, and will have a footprint to allow for more deployment options, the company said, including unserved and underserved markets.

Unserved markets for Norwegian, according to its own presentation, include Ft. Lauderdale, Mobile, Baltimore, Texas, Charleston and Jacksonville.

Underserved markets include Alaska, Los Angeles, Australia, Tampa, Cuba and Boston.

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