Modeling of passengers transportation by Ro-Pax ferries price flexibility

Abstract

Ro-Pax shipping lines itself combines two elements – cargo and passengers. This combination is the main advantage for the customers – Ro-Ro cargo carriers. On the other hand, for travelling passengers it is necessary to provide additional services. For this reason, Ro-Pax shipping lines provided passenger service is twofold and is sufficiently problematic price value. With the acceleration of trade globalization, intensive growth of freight flows, respective development of ports and new establishment of passenger and cargo terminals in ports, intensity of competition in linear shipping sector is increasing. The prices of travels reflect the differences of the ships, whose primary purpose is to carry passengers. Due to nongrowing flows of passenger maritime companies seek the profit by rearranging cruise-ships into freighters that carry passengers. However, for the lack of “travelling by sea” culture, passengers often rate the provided service of ferrie mistakenly. Thus, in order to gain a competitive advantage, it is important to establish the pricing model of effective and flexible quality service and maximum profit harmoniously.