scholarly journals The turning points of revenue management: a brief history of future evolution

2017 ◽  
Vol 3 (1) ◽  
pp. 66-72 ◽  
Author(s):  
Ian Seymour Yeoman ◽  
Una McMahon-Beattie
Keyword(s):  
Revenue Management ◽  
Airline Industry ◽  
Dynamic Pricing ◽  
Low Cost ◽  
Turning Points ◽  
Distribution Channel ◽  
Technological Advancement ◽  
Content Type ◽  
Future Evolution ◽  
The Right

Purpose The primary aim of revenue management (RM) is to sell the right product to the right customer at the right time for the right price. Ever since the deregulation of US airline industry, and the emergence of the internet as a distribution channel, RM has come of age. The purpose of this paper is to map out ten turning points in the evolution of Revenue Management taking an historical perspective. Design/methodology/approach The paper is a chronological account based upon published research and literature fundamentally drawn from the Journal of Revenue and Pricing Management. Findings The significance and success to RM is attributed to the following turning points: Littlewood’s rule, Expected Marginal Seat Revenue, deregulation of the US air industry, single leg to origin and destination RM, the use of family fares, technological advancement, low-cost carriers, dynamic pricing, consumer and price transparency and pricing capabilities in organizations. Originality/value The originality of the paper lies in identifying the core trends or turning points that have shaped the development of RM thus assisting futurists or forecasters to shape the future.

Ryanair: success before love

2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas
Keyword(s):  
Airline Industry ◽  
Business Models ◽  
Low Cost ◽  
Public Image ◽  
Necessary Condition ◽  
Sustainable Competitive Advantage ◽  
Value Proposition ◽  
Content Type ◽  
The Public ◽  
True Value

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.

WASPAS based MULTIMOORA method under IVIF environment for the selection of hub location

2020 ◽  
Vol 33 (5) ◽  
pp. 1233-1256
Author(s):  
Nezir Aydin ◽  
Sukran Seker
Keyword(s):  
Decision Making ◽  
Airline Industry ◽  
Low Cost ◽  
Evaluation Criteria ◽  
Hub Location ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
Decision Making Processes ◽  
Product Assessment ◽  
The City

PurposeLow cost carriers (LCCs) have become one of the most significantly growing parts of the airline servicing market. This new player has redesigned the whole airline industry, which was previously led by the national/international full-service airline companies. Considering such advancements, the hub locations of LCCs became an important issue than ever before. Within this concept, a guiding framework is developed for an LCC company, which is in search of a new hub airport location within Turkey to satisfy the demand and attract new passengers.Design/methodology/approachAn interval-valued intuitionistic fuzzy (IVIF) sets based weighted aggregated sum product assessment (WASPAS) and multi-objective optimization by ratio analysis (MULTIMOORA) methods are developed for decision-making processes.FindingsFive airport locations are evaluated using the developed method. Results showed that in determining hub locations for LCCs, potential number of passengers of the city, airport quality and the number of hotels within the city are obtained as the three most important criteria among 12 evaluation criteria. The best location for the LCC company is determined as Antalya Airport.Research limitations/implicationsTo apply the proposed method to a different set of alternatives, data gathered on comparing location of alternatives from experts should be updated.Originality/valueProposed hybrid framework is presented as the first time in the literature as a decision-making tool. In order to validate framework's applicability, efficiency and effectiveness, a comparison and a sensitivity analysis are conducted at the end of the study.

Developing the right brand image

2018 ◽  
Vol 34 (9) ◽  
pp. 35-36
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Brand Image ◽  
Low Cost ◽  
Content Type ◽  
Customer Base ◽  
Pertinent Information ◽  
The Right ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Developing a feeling of authenticity about products amongst the target customer base is an essential goal for marketers even in terms of low cost items. Consumers derive information from a broad range of marketing communications and consistency is a key element for success. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Europe's airlines will see more restructuring

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Terrorist Attacks ◽  
Content Type ◽  
Underlying Condition ◽  
The Past ◽  
Low Cost Carrier ◽  
The Eu

Subject Europe's airline industry. Significance Despite good performance over the past year, the underlying condition of the European airline industry has not changed. Major carriers are still facing competitive challenges from long-haul airlines based in the Gulf, especially Emirates, Qatar Airways and Etihad Airways, and from the European low-cost carrier (LCC) sector. Impacts The fallout from recent terrorist attacks could hit the industry's fragile recovery. Labour unrest in France will affect Air France, as its pilots voted on May 30 to go on strike over pay conditions. A UK exit from the EU would force its airlines, some of the most efficient in Europe, to reconsider the focus of their operations. New opportunities may arise from the Commission's efforts to negotiate aviation agreements with such countries as Brazil as well as ASEAN.

Ailing Kenyan carrier will face more competition

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Air Travel ◽  
Recovery Strategy ◽  
East African ◽  
Content Type ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Fuel Costs ◽  
Air Carriers

Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.

The Indian Kattalio Game: mapping the counterfeit currency network in India

2016 ◽  
Vol 23 (3) ◽  
pp. 542-558
Author(s):  
Balasubramaniyan Viswanathan
Keyword(s):  
Low Cost ◽  
Primary Source ◽  
Fund Raising ◽  
Law Enforcement Agencies ◽  
Content Type ◽  
Secondary Sources ◽  
Terror Attacks ◽  
Currency Note ◽  
Right To Information ◽  
The Right

Purpose The purpose of this paper is to study the counterfeit currency network in India. This research is an endeavour to bring out various layers which act as source, collection and distribution points in a counterfeit currency network in India. This paper also deals with the fake currency network and its linkages to terrorism. Design/methodology/approach Methodology adopted is a descriptive one which conducts a content analysis on materials derived from secondary sources supported by information from primary source data acquired through the Right to Information Act. Findings This paper argues that the existing measure of calculating the incidence of counterfeit notes per million is understated by the relevant stakeholders in India. This measure changes drastically when other factors such as high denomination notes and police seizures are taken into account, which has not been attempted, though it is duly acknowledged by the stakeholders. This paper has attempted to map the locations in India which act as ingress, distribution and circulation points based on evidentiary data derived from the seizure records. This paper also highlights the fact that criminal gang-operated networks of fake currency are compartmentalised, while the networks operated by terror groups are de-compartmentalised. Practical implications In the process, this paper attempts to enlighten stakeholders like law enforcement agencies, banking regulators and counter terrorism community on the penetration levels of the fake Indian currency note (FICN) networks in India and the need to target these important nodes or points or layers to break up the FICN network. This also highlights fund-raising mechanisms of terror groups, where FICN acts as the main funding resource for groups like the Indian Mujahideen for carrying out low-cost terror attacks. Originality/value The key findings of this research lie in its originality of presentation of facts in a systematic fashion.

scholarly journals Airline revenue planning and the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ben Vinod
Keyword(s):  
Revenue Management ◽  
Cash Flow ◽  
Airline Industry ◽  
Business Processes ◽  
Planning Process ◽  
Task Force ◽  
Management Approach ◽  
Content Type ◽  
Demand Patterns ◽  
Pricing And Revenue Management

PurposeThe static world of flight scheduling where schedules rarely change once published is becoming more responsive with schedule change updates leading up to the departure date due to demand volatility and unpredictable demand patterns. Innovation in cash flow generation will take center stage to operate the business in these uncertain times. Forecasting demand for future flights is a challenge since historical demand patterns are not meaningful which requires a new adaptive robust revenue management approach that monitors key metrics, detects anomalies and quickly takes corrective action when performance targets cannot be achieved.Design/methodology/approachThe novel COVID-19 pandemic decimated the travel industry in 2020 and continues to plague us with no end in sight. With the steep drop in revenues, airlines need to adapt to a new marketing planning process of scheduling, pricing and revenue management that is more nimble to adapt quickly to changing market conditions. This new approach will continue to be relevant in a post-COVID-19 world during and after economic recovery.FindingsA methodology for airline revenue planning: scheduling, airline pricing and revenue management, has been proposed that will also work in a post-COVID-19 era.Research limitations/implicationsThe limitation of the proposed model is that it needs to be applied in practice to determine the true benefits of this novel approach to airline revenue planning.Practical implicationsFlight scheduling will rely more on clean sheet scheduling, schedule revisions and close in refleeting to better match demand to supply. The office of the chief financial officer will have a permanent task force to monitor cash flow and come up with innovative solutions to generate cash flow for liquidity. Adaptive robust revenue management workflows will be integrated into traditional revenue management workflows in the future for competitive advantage.Social implicationsIn a post-COVID-19 world it is anticipated that airline business processes will transform to be nimbler and more proactive in making timely decisions at a greater velocity.Originality/valueThe approach to airline revenue planning for scheduling, pricing and revenue management is a new business process that does not exist today at scale in the airline industry.

US airline collusion charges could save Open Skies

2015 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Department Of Transportation ◽  
Predatory Behaviour ◽  
Content Type ◽  
Fleet Size ◽  
Us Economy ◽  
The Us ◽  
Low Cost Carrier ◽  
Lock In

Subject Outlook for US investigations into airlines collusion. Significance Three carriers, United, American Airlines and Delta, account for 80% of US domestic air travel; Southwest, the leading low cost carrier (LCC) takes much of the remainder. The Department of Justice (DoJ) and the Department of Transportation (DoT) have both launched major investigations into the pricing practices of the airlines. Both regulatory moves imply that the rationalisation of the US airline industry has left passengers vulnerable to predatory behaviour, which would worsen if the US market were further closed to foreign competition. Impacts Low oil prices may provide a long-term boost to profits if airlines move to lock in new hedges. However, manufacturers will be hit hard by an economic slowdown in China, home of two of the largest airlines by fleet size. Increasing wages elsewhere in the US economy will add further pressure to airline labour costs.

“Way Smarter”: Valuair in the budget airline industry

2013 ◽  
Vol 3 (4) ◽  
pp. 1-24
Author(s):  
Terence P.C. Fan
Keyword(s):  
Learning Outcomes ◽  
Airline Industry ◽  
Low Cost ◽  
Subject Area ◽  
Executive Education ◽  
Content Type ◽  
Low Cost Carrier ◽  
Fierce Competition ◽  
Risk Investment ◽  
E Mail

Subject area Strategic management and marketing. Study level/applicability Executive education; postgraduate; undergraduate. Case overview By 2004, the low-cost carrier model had just recently been introduced to Southeast Asia. Airlines under this model quickly began taking market share. Singapore's first budget carrier, Valuair, finds itself in fierce competition between two rapidly emerging competitors in the second half of 2004. Valuair needs to expand in order to remain competitive. However, for this to happen the company needs additional access to capital. The CEO, Sim Kay Wee, has begun pitching to investors that his company is a smart low-risk investment. Is Sim right, given Valuair's competitive position and the market environment in which it operates? Expected learning outcomes Students will be able to apply strategic frameworks in order to develop an understanding of Valuair's market position and use this understanding to advice investment decisions. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or e-mail [email protected] to request teaching notes.

Making connections – reducing loneliness and encouraging well-being

2015 ◽  
Vol 19 (4) ◽  
pp. 182-187
Author(s):  
Shelagh Marshall OBE ◽  
Janet Crampton
Keyword(s):  
At Risk ◽  
Low Cost ◽  
Well Being ◽  
Health Care Team ◽  
High Rate ◽  
Content Type ◽  
High Street ◽  
The Right ◽  
Rate Of Returns ◽  
Health And Well Being

Purpose – The purpose of this paper is to: first, report on a pilot; second, provide a further opportunity for a wider audience to be aware of the work carried out by the Age Action Alliance, Isolation and Loneliness Working Group to identify vulnerable people in the community. Third, to highlight the successful aspects of the project which could be used by other organisations seeking to reduce the effects of isolation and loneliness in the community. Links to the full report and the more detailed findings can be found at: www.ageactionalliance Design/methodology/approach – The main proposal was to test the most effective approach to identifying those at risk of loneliness, using pharmacists in two well-known “high street” pharmacies, through the use of a simple questionnaire that could be handed out to a target 100 customers at each pharmacy or health care team over a six-week period. Findings – A simple questionnaire proves to be successful and gets a good rate of return. The right partners are essential to bring effective results. Referrals were handled very professionally and people were helped to connect socially. Research limitations/implications – The sample was small but the authors achieved a relatively high rate of returns and, in consequence, a number of people were directly helped access the support, information and advice to enable them to feel less lonely. Practical implications – The planning and preparation for this project proved that all needed to be actively and continuously involved in the planning from the beginning. Furthermore in this project involving local pharmacies, the manager or lead pharmacist at a store need to lead and actively engage their staff in the aims and objectives of the project. Social implications – This project aimed to identify people at risk of loneliness and the potential adverse effect on their health and well-being. Anyone helped to avoid social isolation and loneliness is a success, and sometimes with relatively low cost but high-impact intervention. Originality/value – This project was conceived amongst partners and reflected the particular involvement of a “household name” pharmacy and recognition of its key role in identifying and accessing people who may be at risk of loneliness.

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