Cruise and Ferry Review - Summer/Spring 2020

8 3 INTERV IEW On the money Michael Goldner explains how he approaches the complex task of managing cruise revenues for Royal Caribbean International to Sam Ballard T he world of cruise revenue management is a complex, yet fascinating, area. After all, cruise lines are multibillion- dollar businesses that have consistently managed to find new and innovative ways of generating revenue – both pre- cruise and onboard. Royal Caribbean International defines revenue management as the side of the business that manages ticket sales and ancillary revenue, such as cruise insurance and air travel. Anything that passengers spend onboard the ships – such as onshore excursions or beverage packages – is managed by the onboard revenue team. The former is the domain of Michael Goldner, vice president of revenue management. “There are a lot more opportunities to drive revenue than challenges,” explains Goldner, when asked to define the state of the sector. “The key is to find the items that our guests value and are willing to pay for, then provide them with opportunities to purchase them.” That is sometimes easier said than done – few people are willing to accept a hike in prices that solely benefits the cruise line, for example. However, Royal Caribbean’s Royal Up initiative provides a good example to show how revenue can be increased to the benefit of both corporation and customer. “Our optional Royal Up programme allows booked guests to bid for an upgrade to a nicer stateroom,” says Goldner. “It’s a win-win situation as it allows our company to generate money for staterooms that may have otherwise gone unsold, meanwhile our guests are more satisfied with their rooms. The programme has been a huge success. We find that many of our guests who try a nicer stateroom will buy the same type of the room on their next cruise.” Royal Up is that perfect blend of opportunity and reward. To make every revenue generation initiative be successful, however, the revenue management team must collaborate with other departments within the business. The Spa Staterooms, for instance, which are available from 2021-2022, are the result of a partnership between the revenue management and hotel operations teams. The category will