AVIA 2501 WK3.docx - Lecture Fares, Pricing & Network –...

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Lecture Fares, Pricing & Network – Week3TD (Travel Daily) review and QF H1FY21 resultsLet’s quickly review the TD in recent days and try and discover the4 P’s ;Price, Product,Promotion, PlaceInteresting product from NZ last year just prior to COVID- class-skynest/342424QF Recovery ScorecardSWOT – Air Asia ExampleStrength1.Low Fares2. Network3. Strong Brand & synergies 4.Young VibrantWeakness1.Safety reputation2. Service3. Uncivilized times ex AU 4.Some Brands not profitable5. No Alliance but have Value Alliance
6.No traditional interline7. Customer Service / low touchThreats1.Increased range of Aircraft2. Regulatory constraints3. Geo-political (external) tensions 4. Pilot Shortage5. FSC response6. Flight Shaming (Carbon Neutral)Opportunity1.Digital platform – value alliance 2. Aircraft orders3. Secondary Cities4.Growing unique City Pairs5. Ancillaries Products/Pie6.LR aircraft both NB & WB7. Scale and FootprintThe latest with QF FFP-Qantas FFP has ~13.5m members.-QFF even opened a retail store at MEL Airport opened last year-QF has been leveraging QFFP to stimulate travel demand, especially Corporates.Airline Fares• The disciplines of pricing and revenue management are central to airline business models.They are intrinsically(本质地;内在地)linked, when working in harmony, enable an airlineto maximise the revenue from each flight and give it the best chance of maximisingprofitability.• Airline fares are important as they outline the price point to consumers.• Pricing relates to the fares that are charged for seats and which are sold on a seat-by-seatbasis for each flight.• The principles of revenue management apply to any market segment where there are timelimitations to the supply of a product or service and where pre-booking of that product orservice is possible.• Rev Man is the process of predicting customer behaviour to optimise product availabilityand price to maximise revenue growth. Sometimes referred as Yield Mgt.• Traditional Pricing used a Round Trip philosophy, however, LCC forced the market toconsider using one-way pricing, especially short-haul(尤指空运)短途运输的markets.• Certain fare rules have been used to segment the market such as Min. Stay, Advance
Purchase, Incl. Saturday night.• Flexibility of a ticket can also be used to segment the customers.• The pricing and revenue management strategies of FSNCs and LCCs (low-cost carrier) arealso influenced by differences in their business models:-FSNCs (Full Service Network Carriers) generally fly both short- and long-haulservices-FSNCs carry point-to-point traffic as well as passengers connecting between short-and long-haul flights at hub airports-

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Term
One
Professor
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Tags
Pricing, Qantas, LCC

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