Primary Investigation About The Revenue Management System Of The American Airplane Passenger Transport

This is an article, which gives a systematic discussion about the revenue management system of the air passenger transport, especially for the American. There are four parts. They are the basic theory about he revenue management system of the air passenger transport, the origin and development of he revenue management system of the American air passenger transport, its characteristics and contents and how to build our he revenue management system of the air passenger transport on the basis of them. The first part is the introduction of the revenue management system of the air passenger transport, including two questions: First: The basic concept about he revenue management system of the air passenger transport: first we give the comparison about the revenue and revenue management, and than introduce the meaning of revenue management. Revenue Management means that the airplane company sells the controlled assets (airliner tickets) to the most suitable passengers in the best price at the right time through modern information technology, by predicting and optimizing. It is the process of accepting or rejecting the booking in order to maximize the revenue. The two basic factors are multilevel passenger compartment and variety ticket price. They are both introduced in this article and introduce the relationship of airplane company and revenue management according to the specified companies. Second: the basic theory of the revenue management system of the air passenger transport. Generally, there are three methods: over-sales or over-preelection, optimizing combination of the price and passenger compartment (discount distribution), network revenue management of the whole voyage. But there are only two methods, which are suitable for Chinese airplane industry. They are over-sales or over-preelection and optimizing combination of the price and passenger compartment. I give the detailed information about them. About over-sales, the basic theory, the efficiency influence and predicting of over-sales are introduced. About optimizing combination of the price and passenger compartment, three closed steps are introduced. Firstly, Airplane Company must establish appropriate ticket prices, otherwise, revenue is a bad for it. Secondly, the airplane company must execute the using terms of discount tickets rigidly, avoiding the useless of variety prices. And the last step, on the basis of the former two steps, the company should adjust the price and amount of airplane tickets by predicting revenue management and optimizing system. In the second part, I introduce the origin and development of the revenue management system of the American air passenger transport, mainly about two aspects: First: the origin and background of the revenue management system of the American air passenger transport. The background is expatiated from four aspects: 1.the government deregulating management policy produced the revenue management. It is from America, born in the released management policy airplane transport market environment. 2. The revenue management depended on computer booking system. Computer brings the revolution of the method in airplane transportation operation management. Not only change the manpowered booking system and the oldseat controlled method, but also change the sales method and sales network of Airplane Company completely, creating the centralized management and control of seats. Revenue management is the result of the development of computer systematic management. 3. The theory of revenue management is the development and continuing of the intrinsic operation management method. It must be better if there are less seats left in practice. How to establish variety discount tickets, which method can be used to control seats in order to maximize the benefit become the most important questions in the research. It is the rudiment of revenue management. 4. The specified markets need special management method. In airplane transportation market, any airplane company facing any sort of problem makes the necessity of the revenue management. Second: the staged development of the revenue management system of the American air passenger transport. In the middle of 1966, the United States Airplane Company created computer-booking system firstly, which is the basis of seat controlled optimizing. In 1970th, the American government encouraged the development of charter flight because of the increased demand of discount price. It is more competitive for charter flight airplane companies because of the lower operation cost, so they have a large market share. In order to compete with charter flight Airplane Company, the United States Airplane Company provided the discount ticket for the left seats in 1977, so-called super-saverfares, which is the prologue of revenue management. Gradually, more and more statistic date is needed to analyze. It is impossible to just depend manpower, so the revenue management computer system comes true.Hereby, the American Boeing put "left seats management method"forward, encouraging the discount tickets. It is necessary to have some left seats. It is important to predict the amount of left seats in order to ease management. That is the result of EMSR(Expected Marginal Seat Revenue). It is the highest stage of the revenue management computer system. Here is the brief introduction of EMSR. In the third part, the author takes the United States airplane Company for example and analyzing the revenue management of the American airplane transport. The author takes the United States airplane Company for example and analyzes the characteristics, content and the positive value of the revenue management of the American airplane transport. Firstly, it is about the characteristics: paying attention to the integrated usage of mutual subjects, paying attention to the improvement of autoimmunization technology, continuing optimizing creation. Secondly, brief introduce the content of the revenue management of the American airplane transport: 1. Seat over-sales, 2. Discount distribution, 3. Turnover management, 4. The passenger purchase action simulation. 5. The supervision and weighing of revenue management: â‘ the supervision of demand prediction; â‘¡identification of key scheduled flight; â‘¢index supervision; â‘£revenue opportunity simulation. At last, the author summarized the positive value of the revenue management of the American airplane transport. The forth part is the discussion about the precondition and the problem, which needed to pay attention to. mainly about two sections: The six preconditions of management: â‘ training excellent revenue management staff; â‘¡the long-term support from high level leaders in the...