Grandi Navi Veloci

Real-time pricing updates create a smarter passenger pricing system

Published on 30-Aug-2010

Validated on 16 Dec 2013

"The results from the 2009 summer season were positive–in an overall declining Italian travel market, Grandi Navi Veloci saw an eight percent increase in passengers, and increased ticket revenues." - Beatini Paolo, Grandi Navi Veloci

Customer:
Grandi Navi Veloci

Industry:
Travel & Transportation

Deployment country:
Italy

Solution:
C-Suite Framework, Smart Work, Smarter Planet

Smarter Planet:
Smarter Transportation

Overview

Grandi Navi Veloci (GNV) is one of the largest ferry companies in Italy, with an annual revenue of nearly 300M€. It operates over 14 lines connecting Continental Italy with Sicily, Sardinia, Malta, Spain, Tunisia and Morocco, in a highly competitive market.

Business need:
Grandi Navi Veloci’s existing space allocation and pricing system was heavily manual. There was no way to react to competitive price changes in a timely manner, and the company was unable to forecast whether passenger or garage capacity for a given trip was anticipated to be completely sold. The company needed to be able to quickly respond to competitive price pressures, reduce prices when demand is low, raise prices in response to higher demand, and optimize the allocation of garage space.

Solution:
Grandi Navi Veloci worked with IBM Global Business Services to develop a new pricing system that would allow real-time updates, with minimal changes to the sales system, of over 200 different price points per trip. The system can react to changes in competitors’ pricing, sell off unsold seats at the last minute, and sell seats and cabins that are undersold on particular journeys.

Benefits:
· Increased agility in reacting to competition, based on real-time responses to competitors’ pricing changes · The forecasting system has a direct connection with the reservation system to propagate new prices and allocation automatically and in real time

Case Study

Grandi Navi Veloci (GNV) is one of the largest ferry companies in Italy, with an annual revenue of nearly 300M€. It operates over 14 lines connecting Continental Italy with Sicily, Sardinia, Malta, Spain, Tunisia and Morocco, in a highly competitive market.

The Need
Grandi Navi Veloci’s existing space allocation and pricing system was heavily manual. There was no way to react to competitive price changes in a timely manner because there was no system to alert Grandi Navi Veloci to the changes. The company was unable to forecast whether passenger or garage capacity for a given trip was anticipated to be completely sold. The company needed to be able to quickly respond to competitive price pressures, reduce prices when demand is low, raise prices in response to higher demand, and optimize the allocation of garage space when the demand for spaces is highest.

The Solution
Grandi Navi Veloci worked with IBM Global Business Services to develop a new pricing system that would allow real-time updates, with minimal changes to the sales system, of over 200 different price points per trip. The system can react to changes in competitors’ pricing, sell off unsold seats at the last minute, and sell seats and cabins that are undersold on particular journeys.

What makes it smarter
· Increased agility in reacting to competition, based on real-time responses to competitors’ pricing changes
· The forecasting system has a direct connection with the reservation system to propagate new prices and allocation automatically and in real time

For more information
Please contact your IBM sales representative or IBM Business Partner. Visit us at:
ibm.com/travel and transportation

Products and services used

IBM products and services that were used in this case study.

Software:
InfoSphere DataStage, WebSphere Application Server, DB2 for Linux, UNIX and Windows

Service:
GBS BAO: Advanced Analytics and Optimization, GBS BAO: Business Analytics and Optimization Strategy, Information Agenda Engagement

Legal Information

© Copyright IBM Corporation 2010 IBM Corporation 1 New Orchard Road Armonk, NY 10504 U.S.A. Produced in the United States August 2010 All Rights Reserved IBM, the IBM logo, ibm.com, DataStage, DB2, Global Business Services, InfoSphere and WebSphere are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml Other company, product or service names may be trademarks or service marks of others. The information contained in this documentation is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this documentation, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this documentation or any other documentation. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software.