Gondola Final

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A CASE STUDY ON REVENUE MANAGEMENT OF GONDOLAS: MAINTAINING THE BALANCE BETWEEN TRADITION AND REVENUE

Date
September 4, 2012
I. EXECUTIVE SUMMARY

Gondolas – 1094 (first mention)

* Historical black boats of Venice
* One of the most beautiful and romantic cities in the world. Set on over of 100 islands interconnected by about 150 canals. * Faced problems (loss of population to other parts of Italy and physical damage from flooding, pollution and age.) * A quintessential Venice experience and designed to navigate the shallow canals of Venice bound strictly by tradition. * 15th century: became popular and helped people better maneuver around the canals of Venice.

Gondola Boat

* Constructed of 280 pieces of 8 different types of wood and only have metal in the head and stem of the boat * Left side is higher than the right side
* Traditionally are black
* Takes 3-6 months to build at a cost: 20,000 – 30,000 Euros (approximately)

Gondoliers

* Have their own gondola and steered by them
* Usually male and must be born in Venice.
* In tradition, being a gondolier was passed by generation to generation; but today, young people decided to have different jobs. * Divided into 10 traghetti (or ferry stations). Each traghetto elects representatives (called barcali) who represent the traghetto to the government.

Before they’re thousand of them (18th century), now 425 only. To become a GONDOLIER, potential applicants must take a test that measure: 1. Boat-handling skills
2. Language ability
3. Knowledge of the city
4. Ability to work with tourists

Tourism
* 20 million tourists per year (80% of the tourists come from outside of Italy)

* Role of Gondolas:
* Become more of a tourist activity than a source of transportation. * Increase mass tourism = gondolas were altered:
* To accommodate more tourists and generate additional revenue. * Provided more space for passengers.
* Increase motorized boat traffic = more difficult to safely maneuver the gondolas through the narrow canals. * Venice has the highest ratios of tourists to local residents

Price and Distribution
* Since World War II, posted rates increased by:
* 1930 - $ 0.42 for 50 minutes
* 1945 - $ 1.00
* 1965 - $ 5.00
* 1999 - $ 70
* Regulated by the city, but not always followed. May set through negotiation. * Increase Popularity of Gondola = possible to share the gondola with strangers. * 80% of gondola business comes from tour operators (travel package) * Rates (ranges from 35 Euros to 70 Euros per person) are based on 6 people per gondola with 50 minute gondola ride substantial. * Carovane (caravans) of multiple gondolas (sometimes up to 30) often used to keep groups together and to increase efficiency.

* Sometimes, an accordionist and singer are provided for the entire carovana (cost about 150 euros) * Follows a set route and can easily return to the dock within 50 minutes for the next passengers. * Retired gondoliers are assigned to assist with loading and unloading customers.

How to book a Gondala?
* Directly with the gondolier
* Through a hotel
* Through a 3rd party travel agency

Demand and Revenue
* One-quarter of all tourists take a gondola ride.
* 2004: at least 3 million gondola rides with a rate of $20 per person, which is a sizable business.

* Generate income for:
* Gondoliers
* Ganzeri (retired gondoliers who help with the boats) * Group leaders of the stazi
* Boat construction trade

* Provide jobs and revenue for:
* Hat makers and tailors (for gondolier uniform)
* Sizable amount of Souvenir sales.
II. Problem of the Case
III. Facts of the Case (Strengths and Weaknesses)
The earliest recorded use of gondolas in...
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