Inventory/Yield ManagementThe overall goal of yield management is to maximize revenue using pricing strategy, control of availability, and inventory control (Travel Technology and Solutions, 2019). Inventorycontrol is dependent on many factors including aircraft availability, gas, and employees. Using these techniques, Coastline can maximize its revenue by proper and efficient management. For
COASTLINE AIRLINES3example, a customer that purchased an airline ticket three months ago will not pay the same priceas a customer that purchased an airline ticket the week prior to the flight. As ticket demand rises,ticket prices will increase. Operating CostsKeeping operating costs low is the goal of any company, airline or not. Operating costs include wages, salaries, operating supplies (fuel, maintenance, etc.), insurance expenses, and more (Mallikarjun, 2015). A major way that Coastline keeps its operating costs down is by usingonly two types of aircraft, allowing us to streamline maintenance and training procedures. Saving money in every single category is vital to increasing our revenue. Increased revenue allows the airline to continue to grow and expand.Measurement PlanCoastline Airlines will have many measurement plans available to assist in keeping flights on-time and aircraft available. If an aircraft is delayed or scheduled to be thirty minutes late or more, an alternate aircraft will be located to cover in case of any further delay. At forty-five minutes late, the alternate aircraft will be positioned to take the flight. Effective airline scheduling ensures that this is not a common occurrence. If the overall system is delayed, the quickest option will be the first option.
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- Fall '16
- Kelly Lawton
- coastline, Coastline Airlines