revenue management game Amsterdam Rome 1 revenue management Set - PowerPoint PPT Presentation

game revenue management � Joop Lengkeek Joop Lengkeek revenue management game Amsterdam Rome 1

revenue management Set a price to influence the yield and increase the revenue In this game you are the revenue manager for a flight on 16 Januari from Amsterdam to Rome What is the price of a ticket 2 month’s before departure?

€ 119 economy class 2 month’s before departure

€ 1.010 business class 2 month’s before departure

seats price € 900 - € 800 - € 700 30 business class € 600 - € 500 - € 400 70 economy plus € 300 - € 200 - € 100 140 economy class

game revenue management 5 airline company’s Okay, let’s play 4 times a decision to open or close the price range

game revenue management � Joop Lengkeek Joop Lengkeek Explanation of the game You are as a team the revenue manager (5 teams) Goal: make profit Make profit by selling tickets Airplane: 240 seats (30 + 70 + 140) 5 airlines; market: 5 * 240 = 1.200 tickets. Estimated demand: 1.000 tickets ( 83% yield) The demand is depending on the average price 4 rounds (250-200-200-350 customers) Compose teams! 7

game revenue management � Joop Lengkeek Joop Lengkeek Explanation of the game The 3 price ranges (business-economy plus-economy class) have separated target groups. Price is the only factor. 2/3 of the customers pay the lowest price. You can’t sell more tickets then you have. The operational cost are € 30.000 per flight. The variable cost per ticket are: € 300 business; € 200 economy plus; € 50 economy class Explanation of the form. 8

game revenue management � Joop Lengkeek Joop Lengkeek Search the lowest price on internet (1 adult) Amsterdam - Shanghai (business class) Arrival date: 11 December 2016 before 21.00 hour Departure date: 16 december 2016 after 20.00 hour Bonus for the team with the lowest price: € 3,000 Second team: € 2,000 , Third team: € 1,000 9

game revenue management � Joop Lengkeek Joop Lengkeek Search the lowest price for a hotel room (5 stars) Arrival date: 11 December 2016 Departure date: 16 December 2016 maximum 20 km downtown Bonus for the team with the lowest price: € 3,000, Second team: € 2,000 Third team: € 1,000 10

game revenue management � Joop Lengkeek Joop Lengkeek Do you want to be a revenue manager? Okay, let’s play 11

game revenue management � Joop Lengkeek Joop Lengkeek round 1 Which prices do you offer? 12

the customer prefers a certain airline if the price is the same round 2 (only € 700 business)

game revenue management � Joop Lengkeek Joop Lengkeek Quiz question What was the yield of AirFrance-KLM (passengers inclusive Transavia) in September 2016? 14

game revenue management � Joop Lengkeek Joop Lengkeek The yield of Air Franc-KLM in September 2016: 15

game revenue management � Joop Lengkeek Joop Lengkeek round 2 Which prices do you offer? 16

the customer prefers a certain airline if the price is the same ronde 3 (only € 400 economy class)

game revenue management � Joop Lengkeek Joop Lengkeek Quiz question What was the yield of Ryanair in September 2016? 18

game revenue management � Joop Lengkeek Joop Lengkeek The yield of Ryanair in September 2016: 19

game revenue management � Joop Lengkeek Joop Lengkeek round 3 Which prices do you offer? 20

game revenue management � Joop Lengkeek Joop Lengkeek round 4 last-minute Which prices do you offer? 21

who is the winner? 22

and that was the game Thank you 23