The solution
Carnival found airline and hotel revenue management systems incompatible with cruises, where one ship sells multiple cruise lengths from the same inventory at once.
With Revenue Analytics it built YODA, which uses quadratic programming to set prices and allocate cabins jointly across a ship's offerings, with machine-learned demand forecasts and a cruise-specific elasticity model.
Since December 2017 YODA has priced voyages on 65 Carnival ships, about a quarter of the world's cruise fleet; A/B tests showed 1.5–2.5 percent incremental net ticket revenue. The work was a 2020 Edelman finalist.
What it achieved
Price voyages and cabins together across a ship
Why it worked
Joint optimization captures substitution between cruise lengths on the same ship.
A cruise-shaped elasticity model beats airline formulas that don't transfer.
Millions of daily price recommendations scale across brands and currencies.
What can be applied
If off-the-shelf pricing systems don't fit your product, model the joint price-and-inventory decision for your own unit structure — the uplift compounds across the fleet.
Aftermath
YODA expanded across Carnival brands and became the pricing backbone for its fleet; the Edelman citation and the Interfaces paper are standard references in cruise revenue management.
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