Revenue Management of Gondolas

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Revenue Management of Gondolas: Maintaining the Balance between Tradition and Revenue In this case the service is basically based on transportation of people through a gondola with gondoliers. In the past, it was used for only transportation; however, nowadays it is used for tourism activities as well. Almost all tourists who come to Venice, their main purpose is taking a tour with the gondolas. During Carnivals and Christmas, and also in summers the demand is at the highest level. People generally buy this tour as a package that the tour operators sold and mostly they don’t know what the real price is for taking tour with gondolas. On the other hand, people get the service through the hotel that they stay in or they can buy it directly from the gondoliers. When we talk about the nature of service we can say that it is an intangible service that the people evaluate after experience it. The marketing mix elements:

Product: The core product of the service is transportation, which is the primary need of people. Actually this is what the customers expect to be served. On the other hand there are many supplementary products that are mutually reinforcing value added enhancements. Price: Gondoliers charge 80€ for 40 minutes tour for six passengers and they also add 20€ to the tours that are taken at nights. The reason of it is that the gondoliers don’t want to work at nights that is why the price is higher at nights. The other issue on the pricing is that all the revenue does not go to the gondolas. Some of the revenue goes to the third parties as commission, and this rate is very huge for them. On the other hand there are some non financial costs of doing this job, such as pollution and mass traffic. Promotion: The service is sold through the hotels, the travel agencies and tour operators, and also directly by the gondoliers. Therefore, the gondoliers think that there is no need for promotion. On the other hand, most of the customers don’t know the real price of...
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