Airline Revenue Management and Pricing

Airline Revenue Management & Pricing

The two-day course offered by the College of Business touches on various aspects of Airline Revenue Management & Pricing.

About the Course

Who Should Attend

This course is intended to individuals who seek to enhance their understanding of the airline revenue management (RM) methods. Thus, this course is designed for new hires in RM, managers who want to broad their knowledge in RM, and other airline managers seeking insights to the airline revenue management techniques. In addition, individuals and new graduates who seek career in airline revenue management will find this course helpful.

Course Objectives

In today’s challenging airline environment, airlines constantly seek ways to improve revenue and cut costs, to boost profitability. Airlines have been relying on Revenue Management (RM) techniques to make sure their revenue opportunities are maximized. This two-day, short course aims to provide the participant with a comprehensive overview of RM methods. In particular, the course will assist participants to understand the different components of a RM system, including demand forecasting, seat inventory control and pricing. Participants will leave the course with insights into RM issues and awareness of methods to drive business by RM strategies.

This course builds on the experience of ERAU’s long-standing aviation management degree programs and strong connection in the aviation industry through previous working experience, research and consulting activities.

Course Content
Introduction to Revenue Management
  • Historical Background
  • Basic concept of Revenue Management
Differential Pricing and Revenue Maximization
  • Price Discrimination
  • Value Based Pricing
Airline Travel Demand and Forecasting I
  • Characteristics of Air Travel Demand
  • Factors Affecting Air Travel Demand
  • Snapshot Diagram
Airline Travel Demand and Forecasting II
  • Introduction to Time Series Analysis
  • Practical Limitations
    • Group Forecasting
  • No Show Rate Forecasting
Booking Classes and Inventory Control I
  • Market Segmentation and Fences
  • Bucketization
  • Seriel Nesting and Parallel Nesting
Booking Classes and Inventory Control II
  • Expected Marginal Seat Revenue (EMSR)
  • Booking Limit and Protection Level
  • Why do airlines overbook?
    • Spoilage and Spillage
    • Optimal Overbooking
Network Based Revenue Management I

Network Based Revenue Management II
  • Example
  • Ticket Distribution
  • When: April 5-6, 2017
  • Where: Daytona Beach, FL
  • Standard Course Fee: US $ 1,149
  • Early Bird Course Fee (By March 15, 2017): US $ 949
  • Company Discount Course Fee (3 or more people from the same company): US $ 949 
  • ERAU Alumni Discounts:
    • Standard Course Fee: US $ 919
    • Early Bird Course Fee (By March 15, 2017)US $ 759

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