How TUI Cruises Used AI to Transform Pricing and Revenue Management ​

Based in Hamburg, Germany, Mein Schiff, TUI Cruises’ premium cruise line, operates eight modern ships that sail across Europe, the Middle East, the Caribbean, and Asia. Given the number of combinations of ships, destinations, cruise days, and cabin types possible, TUI Cruises could have 50,000 different prices to evaluate in real time on any given day. And as TUI Cruises adds more ships to its fleet, the complexity of this task will only grow.

Realizing that manual pricing was no longer sufficient, TUI Cruises decided to partner with BCG and BCG X to develop a modern revenue management platform that could automate much of the pricing process.

Working collaboratively in sprints, the team designed and developed an AI-based Revenue Management System (RMS). This next-gen solution, which is powered by Travel Revenue & Offer Management by BCG X, uses real-time advanced machine learning models and random trees to price TUI Cruises’ multitude of offerings more accurately and efficiently.

The RMS demonstrated potential early on when the pilot proved better at meeting consumers’ willingness to pay than the legacy manual approach ever could. Price-sensitive passengers now had a better chance of finding good deals because the system automatically reduced prices on cruises that had seen only moderate uptake. Conversely, passengers interested in premium suites were more likely to find available inventory closer to their preferred departure dates because the system calibrated those prices to match demand. The RMS improved both yield and occupancy rates, while also strengthening cross-functional collaboration and decision-making.

The impact of the project went well beyond the technology. Guided by BCG, TUI built new internal capabilities, recruited data scientists and analysts, and revamped its ways of working. TUI Cruises also made a point of training existing employees with skills that would be needed to support not only the new revenue platform but also other areas of the organization.

TUI Cruises has now rolled out the customized system across the entire cruise inventory. In just 10 months, the AI-powered transformation has revolutionized TUI Cruises’ approach not only to pricing but, equally important, to decision-making and team dynamics.