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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.
"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..."
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