Amenities that are high fixed costs that you can spread over many folks. Correlation between greater fixed costs that require greater size.
To succeed, what do you need to do?
- High utilization
- A variable cost that you provide and seek to make margin on (variable cost amenities)
- You want to minimize hand holding and customer-intensive passengers
What are the levers you have to influence intermediaries?
- Promotion/$ but you want to avoid this
- Increase their ability to provide LTV
- Make it easy for them to book you instead of others (just ease)
Inflation of the experience requires a lot of investment but does raise the barriers to entry
For the river cruise: They never show the boat. A boat company that never shows the boat