Airline Revenue Management and Pricing
Overview
On completion of this unit students should have a good knowledge of airline revenue management and pricing as well as the inter-departmental relations with airline scheduling, passenger marketing, product distribution, sales and loyalty programs. There will be an understanding of the history of airline deregulation and the growth of air travel and low-cost carrier competition, and an insight into service marketing, which is perishable with inherent spoilage. Business practice aspects include passenger demand variations, customer segmentation and pricing, booking class assignment, inventory control and distribution facets of airline management and strategy. Performance monitoring and measurement will be considered as well as organisational models.
Requisites
01-June-2025
02-November-2025
Learning outcomes
Students who successfully complete this unit will be able to:
- Discuss the basic principles of passenger Revenue Management
- List the factors that affect demand for seats
- Describe how price is a strategic "lever" in demand management
- Demonstrate technical RM skills and strategies
- Discuss the different reports available to measure RM performance
- Discuss the intricacies of an effective RM organization supported by robust processes
- Demonstrate through creative and informed individual written communications the application of analysis and theory to current practices and developments in Revenue Management practices of airlines
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| Online Contact (Phasing out) Online Learning Activities | 4.00 | 12 weeks | 48 |
| Unspecified Learning Activities (Phasing out) Independent Learning | 8.50 | 12 weeks | 102 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assignment 1 | Individual | 25% | 1,2,3,4,7 |
| Assignment 2 | Individual | 35% | 4,5,7 |
| Assignment 3 | Individual | 40% | 5,6,7 |
Hurdle
As the minimum requirements of assessment to pass a unit and meet all ULOs to a minimum standard, an undergraduate student must have achieved:
(i) An aggregate mark of 50% or more,and(ii) Must complete all assignmentsStudents who do not successfully achieve hurdle requirements (ii) in full will receive a maximum of 45% as the total mark for the unit.
Content
- An introduction to revenue management
- Managing passenger demand
- Passenger transportation pricing
- Booking class assignment
- Seat inventory control
- Spoilage management
- Group travel requests and evaluation
- Schedule and capacity adjustments
- Monitoring performance
- Product distribution
- Revenue management organizations
- Loyalty programmes
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.