How is Yield Management Implemented in Airline Industry?

Capacity management is a key contributor to the success of any company. The tools and techniques that are used for capacity management within a service provider are completely different than a manufacturing-based environment as discussed here. In airline companies in specific, the relationship between supply and demand in addition to all the characteristics that shape … Continue reading How is Yield Management Implemented in Airline Industry?

Yield Management in Airline Industry

Service capacity management is completely different than the manufacturing one due to different considerations as shown here. In the aviation industry for example, which has many stakeholders and players, each one has a different measure for capacity management as discussed here. For airliners in specific, capacity is measured by the number of available seats (Slack … Continue reading Yield Management in Airline Industry

Airline Companies: Supply- Demand Balance

An old anonymous quote says: "To most people, the sky is the limit, to those who love aviation the sky is the home". Professionals in the airline industry are inspired with endless prospects in the sky, but how far are they successful? In a study conducted by Coelli et al. (2002) based on 28 international … Continue reading Airline Companies: Supply- Demand Balance

Capacity Management in Service Companies

In 1968, the American economist, Victor Fuchs, published a book called 'The Service Economy" which represented an early formulation of the service economy concept. According to him, USA was the first nation to grab the opportunities in the booming service sector (Zhou 2015, p.17). In 2014, service- related revenues contributed to 62.4% of the GDP … Continue reading Capacity Management in Service Companies