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Revenue Management, a Competitive Weapon in the Airline Business

 

“God doesn’t play dice with the universe” - Albert Einstein 

1. How much demand will we have for our premium product next weekend?

2. How much would demand change if we increase or decrease the prices by 10%?

 

3.What is our customer’s willingness to pay for our coach product in the mid-afternoon flight?

4. What will be our main competitor’s reaction to a 20% price reduction in this market?

 

5. How will the exchange rate fluctuate over the next month in this market in Asia?

 

6. Etc...  

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Revenue Management, a Competitive Weapon in the Airline Business

 

“God doesn’t play dice with the universe” - Albert Einstein 

This E-book contains an overview of airline Revenue Management fundamentals and its corresponding business process. 

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"Within the limitations imposed by its stochastic nature, the future can be, and is, affected by our present decisions. In fact, ​we attempt to predict the future to change that future, that is, to make decisions that will bend that future towards a more convenient future..."