Chat with us, powered by LiveChat Airline Fare Structure | Gen Paper

Determine your mock airline’s fare structure. Your mock airline is Voyage Airlines and the attachment section contains background information on this airline. Your discussion can include mock data on the fare structure that you outline for business vs pleasure travel, passenger demand patterns, Seasonal operations, the elasticity of demand, pricing strategies, inventory/yield management, operating costs, profit maximization, and output determination in the short run.
Include a revenue matrix of four to seven fare structure examples that will impact your mock airline’s revenue. Your discussion should demonstrate how each of your fare elements will correlate to each other to benefit revenue overall. Also, include recommendations on any elements that are not performing to the desired revenue level and the controls you would have in place to alert and correct such issues.
Paper requirements
The paper must be written in the current APA format with 2-3 pages in length, not including the title page and reference page.
Must contain at least two to three references with one reference being a peer-reviewed article.
All references, including your peer-reviewed article, should be cited in the text of the assignment and on the reference page.

Running Head: Build Your Airline 2

Build Your Airline 2

Build Your Airline.
Student’s name:

1. The basics
The mock airline to be presented goes by the name Voyage Airlines an airline in aviation history founded by several friends’ entrepreneurs. We got our start in 2011, and ever since then we’ve been steadily growing our business. Our company’s mission statement may be summed up as “to inspire excellence and dedication.” We at Voyage Airline are quite proud of the fact that we are the most reputable airline of our kind on the West Coast. Our fleet is comprised of a total of 200 different aircraft. Voyage Airlines was founded by two male friends who identified; nevertheless, our staff members come from a diverse range of racial backgrounds and gender expressions. Due to the fact that we are modelled after Delta Airlines, we do not have a unionized workforce.
In addition to Hilton Head International Airport, Voyage Airlines has hubs on the west coast in the cities of Los Angeles, San Diego, San Jose, San Francisco, and San Bernardino; in the Caribbean, the airline has bases in San Juan, Puerto Rico, and Santo Domingo. Our ability to fly into and out of foreign airports has substantially increased the number of possibilities we have for traveling to other countries. Domestic travellers will also find them to be helpful in a variety of situations.
2. Airline’s overall revenue focus.
The well-being of those present will always come before any and all other concerns. This suggests that funding for safety will come first, followed by funding for other activities in descending order of importance. Voyage Airlines is going to provide a sufficient amount of money to their budget in order to guarantee the security of their flights. As part of this process, you will need to do equipment maintenance, instruct crew members on proper safety procedures, and run drills to identify potential hazards.
Utilizing location information is one strategy that may be used to increase a company’s share of the market. When we gave some thought to these issues, we arrived at the following conclusion: In which cities do they spend the most of their time? Which kinds of travel do they participate in? As a direct consequence of this, we located our hubs in popular tourist areas. Places such as Los Angeles and San Diego attract a sizable tourist population comprised mostly of individuals from different nations and cities. On the other side, the cities of San Francisco, San Jose, and San Bernardino are located in closer proximity to a number of the most well-known beaches in the state. It is crucial for airlines to make the necessary adjustments and investments in data analytics and location technologies in order to construct customer experiences that are in accordance with the needs of their customers (Vinod, 2019).
By focussing on the locations of our consumers, we are able to develop hubs that are more conveniently located for them. When a client


Optimizing Airline Revenue


How Voyage Airlines Will Optimize Airline Revenue

Voyage operates in the airline industry where there is constant fluctuation of airline costs that leave managements confused. There are also many other airline companies offering the same services and in the management of revenue, pricing plays a huge role in influencing important aspects such as increasing market share, increased product development, and penetrating new markets. There is complexity in pricing with many factors contributing to constant changes in prices. “Because the average airline operating profit is just 3%*, it’s crucial that airlines use effective pricing strategies to make the most money for their products – while maintaining affordability for their customers” (Fairfly, 2021). Therefore, Voyage has to price more precisely to optimize revenue by;

Passenger Profiling and Customizing the Travel Customer Offer

Voyage will profile its customers and adjust prices accordingly. It can group passengers as either leisure or business classes and ensure different prices that suit each group. This strategy will help Voyage increase customer impact and their satisfaction. For instance, fairs can be higher for leisure travels who book months before their departure. The prices can be low for business travelers who book when they need to travel. This will ensure that all types of travelers are accommodated and the airline will maintain its customers. Voyage has to understand which routes are mostly taken by business travelers and those taken by leisure travelers. Prices must be designed to suit every route and the type of passengers that go there.

Bundle Pricing

Voyage has to understand its customers and generate custom prices that suit their individual attributes. The prices designed must consider a wide range of factors such as supply and demand, traveler’s history with Voyage Airline, the initiatives of the company, and pricing by its competitors. According to Shao and Kauermann (2020), considering all these factors will ensure the Airline prices fairly or even generate better prices that will allow it increase its revenue. Its pricing strategy will allow it to beat its competitors’ pricing and make higher profit margins from its services.

Building A Pilot Project

Voyage will do a test and understand what works for its model of business by measuring attribute-level customization. This will help the company determine optimum prices for each class and the highest possible amount each customer is willing to pay for a flight. They will then devise effective strategies of offering that price. According to Boin et al., (2017), the company can use customer travel profiles, purchasing patterns, number of passengers that book in a day, and the origin and destination of passengers. This information will allow voyage classify their customers and services effectively while designing differentiated offers and optim



Controls in Airline Strategic Planning and Management

Strategic planning and management are both important for every organization’s process of achieving its long-term goals. Voyage airline utilizes strategic planning to form its direction, that is, its priorities, vision, and mission through strategic management, which is the overall direction achievement process from planning to execution. To promote growth and increase the airline’s revenue, the organization uses the stay woke air strategy controls. These controls include reducing operating costs, pricing strategy, efficiency in airline operation, and yield or inventory management. Voyage Airlines uses these strategies effectively to continue increasing revenue and staying competitive.
Voyage airline compares every online travel agent to find the cheapest flight tickets on the net. It also offers loyalty programs by awarding its customers every time they fly their points or air miles to spend on their later flights. This way, customers are attracted to maintain their loyalty to this company. The airline also allows customers to get credit cards that allow them free first-class lounge visits. If a customer is flexible on the dates they fly, the airline provides a sky scanner tool to find the day that is cheaper to fly to their destination.
Airline operations in every company must be associated with a cost, and these operations may include aspects such as flight operations, maintenance, and ground resources. These flight operations include flight planning, the process of producing a flight plan for a specific aircraft destination. The process, therefore, involves fuel calculation for the aircraft to reach safe to its destination and involves compliance with the requirements of the air traffic controls to avoid risks associated with mid-air collision. The company planners also choose the appropriate route, speed, and height; they load the necessary fuel on board to minimize flight costs (Şi̇mşek & Aktürk, 2022). This way, the company can maximize its profit for its competitive advantage. Another flight operation that is essential to the company is the use of dispatchers. These people assist in flight path planning by considering en-route winds, aircraft loading and performance, airspace restrictions, and many other tasks (Şi̇mşek & Aktürk, 2022). Voyage airline employs highly qualified flight dispatchers to avoid losses associated with wrong decisions and missed plans.
It is very important to have an effective maintenance system for every aviation industry to stay in compliance with aviation regulations and uptime and reduce long-term airplane repair and maintenance costs. Voyage Airlines has made maximum use of specialized fleet management software to streamline its operations both on the ground and in the air. It also optimi

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