Press Release: Manugistics Group, Inc.
August 1, 2001
ROCKVILLE, MD -- Manugistics Group, Inc. (Nasdaq: MANU), the leading global provider of Enterprise Profit Optimization(TM)
(EPO) solutions -- the first solutions to simultaneously optimize a company's supply- and demand-side business
processes -- yesterday announced that Princess Cruises, part of the P&O Princess Cruises plc (NYSE: POC) family
of cruise lines, continues to see significant benefits from Manugistics pricing and revenue optimization solutions.
The solutions have better enabled Princess Cruises to forecast consumer demand, optimize fare-class mix, and create
promotions that maximize net revenue contribution, enhancing the profitability of this premier North American cruise
line.
Most important to Princess Cruises -- which operates hundreds of voyages each year -- is the positive impact the
solutions have had on customer service.
``At P&O Princess Cruises, we are committed to using innovative technologies that can bring us closer to our
many passengers,'' said Alan Buckelew, chief information officer at P&O Princess Cruises. ``Manugistics pricing
and revenue optimization solutions allow us to offer our Princess Cruises passengers a variety of value options
that can better match their preferences -- while enabling us to better understand when passengers will book a sailing,
in what category, at what fare, and for which voyage.''
The Manugistics solutions help create dynamic forecasts -- by voyage -- for hundreds of micro-markets correlated
to individual or group demand. Cancellations, sales promotions and expected demand are then evaluated, and recommendations
are made for when fare classes should be opened or closed, balancing the likelihood of booking a cabin with the
probability of earning the greatest profit. The solutions also power regional or state-specific promotions designed
to create higher-yield demand for berths that would otherwise go vacant or book at a lower fare.
In addition to enhanced profitability, the Manugistics implementation has produced other benefits. Said Deanna
Austin, vice president of yield management at Princess Cruises,
``Using the Manugistics solutions, my team now spends less time pulling together data and more time figuring out
tactical marketing strategies to fill our berths at the highest possible yield.''
Princess Cruises believes improved revenue management can also translate into cost savings for passengers. That's
because with fuller ships booked using optimized fare classes, the company can offer more cabins at rates lower
than it could charge if the ship sailed with fewer passengers and a smaller number of fare classes.
Said Greg Cudahy, Manugistics executive vice president of pricing and revenue optimization, ``Manugistics highly
values our multi-year relationship with P&O Princess Cruises. The company has long shown technology vision
and was quick to recognize the significant and immediate revenue-enhancing possibilities of advanced PRO solutions.
Manugistics continues to demonstrate a firm commitment to delivering value at P&O Princess Cruises and elsewhere
across our deep base of transportation, travel, and hospitality clients.''
About Princess Cruises
Princess Cruises, one of the best-known names in North American cruising, is a global cruise and tour company.
Part of P&O Princess Cruises plc (NYSE: POC), it operates ten ships on approximately 150 different itineraries
calling at nearly 260 ports around the globe. By 2004, a further five ships will be added to its worldwide fleet.
Cruises range from seven to 72 days in length to destinations including the Caribbean, Alaska, Europe, Panama Canal,
Mexico, South Pacific, South America, Hawaii/Tahiti, Asia, India, Africa, Holy Land, Canada/New England, Bermuda
and world voyages. Princess is also one of the leaders in Alaska cruise tour vacations, and owns four riverside
wilderness lodges, with a fifth under construction, plus a fleet of UltraDome railcars and luxury motor coaches
which take passengers through the heart of the 49th state. Princess additionally operates cruise tours in China,
Australia, Africa, India, Europe, the Canadian Rockies and the eastern United States.
About Manugistics Group, Inc.
Manugistics is the leading global provider of Enterprise Profit Optimization (EPO) solutions -- the first solutions
to simultaneously optimize a company's supply- and demand-side functions. Manugistics EPO and eMarketplace solutions
help companies lower operating costs, enhance profitability and accelerate growth. The company's list of clients
includes industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems,
Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford, General Electric, Harley-Davidson, Hormel, Levi Strauss
& Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines. For more information,
go to http://www.manugistics.com .
FOR ADDITIONAL INFORMATION REGARDING THIS ANNOUNCEMENT, CONTACT THE MANUGISTICS NEWSBUREAU HOTLINE AT 301-984-5330.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among
others, anticipated losses, unpredictability of future revenues, potential fluctuations in quarterly operating
results, competition, risks related to quarterly performance, risks of system interruption, management of potential
growth, and risks of new business areas, international expansion, business combinations, and strategic alliances.
A decreased demand for computer software due to weakening economic conditions could result in decreased revenues
or lower revenue growth rates. More information about factors that potentially could affect Manugistics financial
results is included in Manugistics filings with the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the year ended February 28, 2001, and Quarterly Report on Form 10-Q for the quarter ended May
31, 2001.
Manugistics is a registered trademark, and the Manugistics logo, the phrase ``Leveraged Intelligence,'' Enterprise
Profit Optimization and Manugistics NetWORKS are trademarks of Manugistics, Inc. All other product or company names
mentioned are used for identification purposes only, and may be trademarks of their respective owners.
SOURCE: Manugistics Group, Inc.