MGQ - Copy - crew Then we calculated the probability for...

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Problem Mimi’s Orlando Shuttle Mimi runs a shuttle flight business, because she refused to overbook her flights, she is losing money every time she flies. Our job is to recommend a new reservation strategy and to include a policy for handling over-booked customers and to provide Mimi with positive income. Assumption We assumed the 9% “no-show” was relatively constant without any big changes throughout the year Mimi’s Orlando Shuttle’s reputation stayed the same though out the year She wanted to give a reasonable price to her customers Methodology First we calculated the fixed costs(lease, insurance, fuel, staff, runway charges and flight
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Unformatted text preview: crew) Then we calculated the probability for each reservation number using binomdist function of excel We chose an appropriate probability of over booking which we used to calculate the revenue and over booking expense Finally we found our total net revenue Conclusion We decided Mimi should book 159 passengers for each of her round trip flights and set her fee to $290 round trip For passengers who were overbooked and showed up an additional $100 compensation would be given as well as a refund If Mimi were to follow this plan, she can expect to make 3.375 Million dollars per year...
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