Irline ticket price fluctuations and revenue management strategies
A key element of a profitable global aviation industry is the ability of airlines to generate a sufficient amount of revenue from passengers. Airlines rely on a team of revenue management analysts to ensure that every seat sold is done so at the maximum price possible. When revenue management get it wrong, the airline will either not fill enough seats due to high prices or fill too many seats at low prices. Both scenarios will result in lost revenue and lower profits. For this reason airlines incorporate price discrimination whereby similar seats are sold at different prices depending of passenger demand and time of booking. The general perception amongst passengers is that the earlier you buy the ticket the cheaper it is.
For the past two months you have been collecting data on a daily basis for specific flights to monitor the fluctuation in ticket prices.
For this assignment, you are to statistically analyse the data you have collected, present it in a graphical format and discuss what the data suggests about the airlines pricing strategy. You should
(i) Explain which routes, airlines and flights you chose to collect data for and the reasons for doing so. Identify any situation where the data collected was outside the norm such as sold out flights etc.
(ii) Present the data using clear and appropriate graphical methods. Price fluctuations with time should be clear.
(iii) Apply statistical analysis to identify any trends and correlations in the fluctuations. You may want to consider time series analysis to identify patterns. It is important that any statistical method and calculation used is clearly described.
(iiii) Compare and discuss the ticket price trends between different routes and airlines and suggest possible reasons for the trends. Can you identify the best time to buy a ticket? Is it possible to forecast the fluctuations for similar flights?
You must only use data collected by you.
The submitted assignment should be structured as a technical report. You should include a word count at the end of your assignment. You may use diagrams wherever appropriate to clarify your explanations. It is not necessary for you to include the raw data collected in the report.
Added on 15.01.2015 18:21
i have uploaded the data collection sheet and coursework brief.