Carus brings ferry industry experience to help operators maximise growth, says Simon Johnson
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This article was first published in the Autumn/Winter 2016 issue of International Cruise & Ferry Review. All information was correct at the time of printing, but may since have changed.
Ferry companies, like any other business, are looking for ways to boost performance. But amid the day-to-day business of running ships in a safe and compliant manner, it can be difficult to pinpoint areas that could be optimised to generate commercial growth. Increasingly, companies are turning to industry specialists to help them identify and take advantage of those opportunities.
Engaging a consultant doesn’t have to mean great expense compared to the benefits that can be realised or major disruption to the business. Carus consultants are specialists who have run ferry companies themselves in the past. We understand how ferry organisations work and where to look for potential improvements. We look at which areas work best, which ones are more complex and more costly, and what measures can be taken to give the organisation some quick wins before they consider addressing any larger areas.
For example, the retail store is an area where improvements make a huge statement for the company, but many ferry companies don’t know what key performance indicators they should measure to drive improvements. That’s where we come in. Quite often, a review of the retail proposition reveals that the items on sale are not what people want to buy. Identifying the items that passengers want to buy and strategically transitioning to stock those items can bring about positive change in a relatively short time.
Ferry passengers’ expectations of onboard retail reflect their experience in the high street. They know how much ‘classic’ items such as a cup of coffee or a bottle of water should cost, and if they see these items at a higher price in the onboard shop they will assume that everything in there is expensive – and many will leave without making purchase. So as well as stocking the products customers want to buy, it’s important to review the pricing strategy, to identify key product lines and consider which price points will optimise sales.
Ticket pricing and inventory, taken together, can also yield opportunities for growth. Many operators have empty space that could be used, or space that they could charge more for. Tweaking the pricing strategy to offer cheaper off-season fares that encourage travel, and making better use of space during the peak season, can enable the company to maximise out what it is already selling – benefiting customers as well as the organisation. In many cases we find that by reloading sales inventory and configuration in a certain way for next season, the company can quickly improve its sales figures. And when you can join the customer journey up with the onboard offer the opportunities can be further exploited.
These are just a few examples of how working with an industry specialist to understand, plan and execute improvements in discrete areas of the business can help boost performance – in many cases, a measurable return on investment. These small steps can deliver big results, and their success often inspires ferry companies to work with us towards wider-reaching improvements across the business.