4,362 research outputs found

    airline revenue management

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    With the increasing interest in decision support systems and the continuous advance of computer science, revenue management is a discipline which has received a great deal of interest in recent years. Although revenue management has seen many new applications throughout the years, the main focus of research continues to be the airline industry. Ever since Littlewood (1972) first proposed a solution method for the airline revenue management problem, a variety of solution methods have been introduced. In this paper we will give an overview of the solution methods presented throughout the literature.revenue management;seat inventory control;OR techniques;mathematical programming

    Airline E-commerce user experience experiment: An investigation of Thai LCCs passengers' purchasing behaviour among different online platforms

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    Purpose: This study examines the current state of the airline’s e-commerce platforms and seek to identify their benefits and disadvantages in the aspect of user experience. Design/methodology/approach: The study commenced by first reviewing the literatures on actual sale figure from the studied Thai LCC, user interface (UI) and user experience (UX). It then proceeded to gather the empirical evidences using questionnaires from 135 active air passengers who have online purchasing experience. The composite findings from literature review and surveys were then used to design and apply for the final phase which is a series of in-depth interviews of air passengers on their usability test sessions and experts from the related industries. Coding and clustering was utilised to analyse the qualitative data obtained. Findings: The study examines the differences in online ticket purchasing platforms including airline's website, mobile-site and mobile application. The results identified five areas of factors: physical, trust, willingness to learn, context of use and adjustment. With regard to these factors, there are no single platform that outperform others. Airlines need to ensure that UX/UI of all platforms meet the users’ requirements in all circumstances. Originality/value: The study reveals the customer thinking processes on online purchasing behaviour. It focuses on web-usability and user experience of different booking platforms. The findings allow the subjected LCC to improve customer experience and optimise its platforms. The paper could also benefit other entrepreneurs who are in the related industry or similar contexts. In addition, the study of user-experience in the context of airline industry, particularly in the emerging countries like Thailand is limited.Peer Reviewe

    The strategic evolution of Aer Lingus from a full-service airline to a low-cost carrier and finally positioning itself into a value hybrid airline

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    Aer Lingus has been an unique airline as it transitioned from a full-service airline to a low-cost carrier and is currently positioned as a value hybrid airline. It has coexisted with Ryanair for decades and it encountered three imminent periods where bankruptcy prevailed from 1993 to 2009. The research aims to uncover the various strategies that were applied to structurally re-engineer the carrier in order to adapt to its evolving competitive landscape. The key pillars underpinning Aer Lingus’ turnaround as a value hybrid were as follows: strict adherence to capacity discipline; relentless cost control and value-adding, consumer-driven product differentiation; innovative partnerships including contract flying to alleviate its problematic seasonality issues inherent in Aer Lingus markets; and by re-engineering its Dublin-based hub airport. A visionary master plan for the hub was fabricated to capitalize on Ireland’s geographical positioning which targeted the traffic flows between UK/European and North American destinations through its synchronized connection network at Dublin

    Hub Premium, Airport Dominance and Market Power in the European Airline Industry.

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    Using evidence from an original dataset of more than 12 million fares, this study sheds light on two issues relating to the pricing behaviour of the main European airlines: 1) the extent to which an airline’s dominant position at the origin airport, at the route and the city-pair level affects the airlines’ market power; 2) whether fares follow a monotonic time path consistent with the pursuing of an inter-temporal price discrimination strategy. Our estimates reveal that enjoying a dominant position within a route is conducive to higher fares, possibly because of the limited size of many “natural monopoly” routes that facilitate the incumbent’s engagement in a limit pricing strategy. On the contrary, a larger share within a city-pair does not seem to facilitate the exercise of market power, thereby suggesting the existence of a large degree of substitutability between the routes in a city-pair.on-line pricing; price discrimination; dispersion; yield management.

    Air transport in Africa: toward sustainable business models for African airlines

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    Although there is a vast amount of literature on airline business models and their evolution in changing global landscapes, there is a general lack of research into the applicability of those models, traditionally defined in European and North American contexts, to the African scene. Implicit in this study is the hypothesis that the African environment is unique enough to warrant its own host of strategies, which may be distinctive enough to form part of a new strategic template, or business model. Initially, a review of existing literature is undertaken to profile the African aviation environment and evaluate existing airline business models and their evolution, both globally and in Africa. The methodology consists firstly of a cluster exercise, whereby 57 African airlines are analysed in terms of their network and size, to yield a number of heterogeneous groups which serve to identify the current business models of airlines on the continent. Following this, eight airlines (representative of the groups outlined in the cluster analysis) were subsequently selected for analysis in terms of the Product and Organisational Architecture framework. While it was evident that the traditional models are followed in Africa, in some instances variations were apparent. Full-service network carriers and regional carriers were concluded as being the most prominent and stable in the African market. The applicability of the low-cost carrier model in Africa was also examined at length, with mixed results. The analysis also raised network density and connectivity as essential components of business models for delivering profits in an African context

    airline revenue management

    Get PDF
    With the increasing interest in decision support systems and the continuous advance of computer science, revenue management is a discipline which has received a great deal of interest in recent years. Although revenue management has seen many new applications throughout the years, the main focus of research continues to be the airline industry. Ever since Littlewood (1972) first proposed a solution method for the airline revenue management problem, a variety of solution methods have been introduced. In this paper we will give an overview of the solution methods presented throughout the literature

    Revenue Management: Advanced Strategies and Tools to Enhance Firm Profitability

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    Much of the past research on revenue management (RM) has focused on forecasting and optimization models and, more recently, on adaptation of RM to the specific needs in various industries, such as restaurants, car rental, transport and even health care services. Surprisingly, although many industries have become increasingly customer-focused, the customer seems to have been relatively forgotten in this stream of research. Our intent in this monograph is to help explore the role of marketing in RM in more depth

    An Analysis of the Dynamics of the US Commercial Air Transportation System

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    Major trends in the airline industry are analyzed to highlight key dynamics that govern the US domestic air transportation system. The hypothesis is that air travel supply and demand equilibriums, a reliance on outside capital, and intra-industry competition are among the most critical forces that are driving the current restructuring of the airline industry. Data on airline operational and financial performance is used to trace these dynamics as the industry evolved through periods of industry deregulation, an economic growth bubble, and the aftermath of the attacks of September 11, 2001. The thesis identifies the post-deregulation development of hub-and-spoke networks and yield management systems as the key forces that would set the stage for a bifurcation of the air travel market during a cycle of economic growth in the late 1990’s. During this bubble economy, the dynamics of supply and demand fundamentally shifted as the major carriers focused on high-revenue, high-cost operations and travelers began to flock to newer low-fare, low-cost carriers. With the end of the economic growth cycle in 2000, the bifurcation of the airline industry began to affect revenues and profits at the major carriers. Massive and unprecedented industry losses would ensue, and would be compounded by the attacks of 9/11. Airline operational strategies in response to 9/11 and longer-term restructuring efforts are discussed in order to further identify the key dynamics affecting the air transportation system. These dynamics are synthesized and then discussed within the broader context of the air transportation system, the impact of air travel on the economy and mobility, and the role of government.MIT Global Airline Industry Program, Alfred P. Sloan Foundation

    An economic model of the manufacturers' aircraft production and airline earnings potential, volume 3

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    A behavioral explanation of the process of technological change in the U. S. aircraft manufacturing and airline industries is presented. The model indicates the principal factors which influence the aircraft (airframe) manufacturers in researching, developing, constructing and promoting new aircraft technology; and the financial requirements which determine the delivery of new aircraft to the domestic trunk airlines. Following specification and calibration of the model, the types and numbers of new aircraft were estimated historically for each airline's fleet. Examples of possible applications of the model to forecasting an individual airline's future fleet also are provided. The functional form of the model is a composite which was derived from several preceding econometric models developed on the foundations of the economics of innovation, acquisition, and technological change and represents an important contribution to the improved understanding of the economic and financial requirements for aircraft selection and production. The model's primary application will be to forecast the future types and numbers of new aircraft required for each domestic airline's fleet
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