Research On Route Revenue Management For Hubei Branch Of China Southern Airlines

Revenue management originates from the development of the civil aviation industry and has been widely applied to Aviation, Hotel and Tourism Industry. With the increasing frequency of adjustment of price and more transparent competition in the Aviation Industy, the applicaiont of revenue management becomes more common. Iluminated by the operating experience of aviation corporations abroad, domestic aviation market has been learning revenue management theories of air routes and obtained some achievements.With the rapid growth of transport capacity of the civil aviation industry, the gradual reduction of market admittance as well as the improvement of the high-speed railway network since 2014, the business environment of the industry is under dramatic change. In the new market competition situation, main domestic airline companies have gone through increasing business pressure, therefore how to enhance total revenue becomes the major concern. Restricted to high-quality traffic rights and time resource, new added transport capacity has to be put into competitive markets. China Southern, China Eastern, Air China, has established operating bases in Wuhan. Meanwhile, the shared capacity of none-based companies has passed 30% already.The high-speed railway pivot in Wuhan has taken shape and competition in aviation market has been fiercer.The thesis first introduces the background, objective and meaning of the research project, then illustrates and induces relative theories of revenue management and marketing models. According to the macro and micro market environment, the author points out the strategic direction of Hubei Branch and the operation objectives of the Marketing and Sales department. Based on the theories, marketing environment and strategic target, the thesis diagnoses the current revenue management situation and puts forward the problems need to be solved in air routes management, product, market game, sales channel and personnel training. At last, the thesis proposes for solutions and methods aimed at revenue management improvement accordingly.