Research On Revenue Management Model Of Regional Airlines And Its Application

Because of the multidisciplinary characteristics of Revenue Management (RM), there are some difficulties in the application of RM theory in domestic airlines. There is a relatively large gap between Chinese airlines and foreign airlines in the application of RM in civil aviation industry. As known, the air market can be divided into domestic market and international market. On the operation of international airlines, domestic airlines and foreign airlines often face a very similar marketing environment because of the similar constituents of passenger sources. Therefore, the domestic airlines can more easily use the experience of other countries for reference in the implementation of RM on international market, which has been proven in practice. But we should pay attention that the domestic aviation market is much different from foreign aviation market. If the foreign RM technology is applied in the domestic market without any changes, there will be little effectiveness, or even the opposite result is produced exactly. The thesis focuses on the research of regional airlines' RM practices based on domestic airline market by adopting the methods that combining the theoretical research and empirical analysis.A comprehensive analysis on the connotation of RM theory is given in the article. Beginning with the basic concept of RM, the market background and the theories sources of RM theories is summarized, which is based on traditional marketing theory. And then, the impact of the application environment changes on the application of RM is analyzed, and RM application model is proposed, which solves the methods of the application of RM in the regional airlines.A passenger hierarchical model of regional airline market is built in the thesis. Market segmentation and market targeting are the most basic work of marketing in modern enterprises, and the airline industry is no exception. Because the economic situation and characteristics of local culture are different, airline market between foreign and domestic is significantly different. The theory of social strata is introduced to market segmentation analysis in regional airline market. With the combination of consumer behavior theory, a market segmentation model which has two-story structure features is proposed for regional airlines, and the most important problem in RM application is solved in regional airlines.Basing on market segmentation of regional airline market, the strategy of RM in regional airlines is analyzed, and the strategies on price management and inventory management which are Suitable for passenger structure are suggested. According to the analysis, a RM positioning model including the dimension of market segmentation is developed, which is useful for regional airlines to build a unified RM system applying the core principle of RM based on the market segmentation in different stages of market.A passenger flow forecasting model is built for regional airlines. After studying the characteristics of regional aviation market deeply, the factors affecting passenger traffic is listed. Then, a top-down route traffic forecasting model which has gradual decomposition characteristics is proposed. This model consists of three parts, the overall trend forecasts, medium and long-term forecasts, and short-term forecasts. The medium and long-term forecasting submodel and short-term forecasting submodel is focused on, and an empirical research is carried out.The dynamic pricing and game problem of regional airlines is studied in the thesis. In view of circumstances of regional airline market, the Utility Function which is the core part of the model of market share is optimized. The improved Utility Function includes the impacts of the flight time and the brand competitive factors on ticket sales particularly, reflecting the value judgment of passengers. Through the combination of the Logit model and Utility Function, the choice probability of passengers in different price combinations is described. Finally, the process for two flights to acquire game equilibrium is described.In application research, a Remaining Seats Sales System for regional airlines is developed for passengers in the potential layer, which has been applied. The sales trend is analyzed from two aspects of sales volume and average fare. Practice has shown that the RM method and the developed application system have reached desired performances. Sales trend also has shown that the behavior characteristics and scale of the potential layer are consistent with the conclusion of the paper.