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

game revenue management

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revenue management game

Amsterdam Rome

In this game you are the revenue manager for a flight on 16 Januari from Amsterdam to Rome

revenue management

What is the price of a ticket 2 month’s before departure? Set a price to influence the yield and increase the revenue

€119 economy class

2 month’s before departure

€1.010 business class

2 month’s before departure

seats 30 business class

70 economy plus 140 economy class

price

€900 - €800 - €700 €600 - €500 - €400 €300 - €200 - €100

4 times a decision to open or close the price range

5 airline company’s game revenue management

Okay, let’s play

game revenue management

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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!

game revenue management

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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.

Explanation of the game

game revenue management

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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

game revenue management

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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

game revenue management

Okay, let’s play

Do you want to be a revenue manager?

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game revenue management

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round 1

Which prices do you offer?

round 2

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

game revenue management

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Quiz question

What was the yield of AirFrance-KLM (passengers inclusive Transavia) in September 2016?

game revenue management

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The yield of Air Franc-KLM in September 2016:

game revenue management

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round 2

Which prices do you offer?

ronde 3

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

game revenue management

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Quiz question

What was the yield of Ryanair in September 2016?

game revenue management

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The yield of Ryanair in September 2016:

game revenue management

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round 3

Which prices do you offer?

game revenue management

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round 4

last-minute

Which prices do you offer?

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who is the winner?

and that was the game

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Thank you