Airline revenue management performance measurement of South African Airways origin-destination revenue management
- Authors: Githiri, Duncan Wanjau
- Date: 2017
- Subjects: Revenue management , Airlines Finance , Performance Measurement , Airlines Rates Mathematical models , South African Airways
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/59188 , vital:27455
- Description: Revenue Management (RM) in the airline industry is the practise of selling fixed capacity as a service over a finite time horizon. The market is characterised by the customers’ willingness to pay different prices for the service. This creates the opportunity to target different customer segments and use price differential to attain the optimal passenger fare mix to maximise revenue. The aim is to maximise revenue and an airline can expect revenue increase of between 3 to 7 percent with the successful implementation of a Revenue Management system. The question of whether the revenue increase can be attributed to the RMS is crucial in determining its level of success and validating the optimisation strategy applied (Rannou and Melli, 2003). South African Airways (SAA) migration from Leg-based optimisation to Origin-Destination (O&D) network based revenue management optimisation created the opportunity for this study to measure and evaluate the RMS performance. Revenue performance measuring tools using inventory systems data to measure RMS performance, ASK (Available Seat Kilometre), RASK (Revenue per Available Seat Kilometre), CASK (Cost per Available Seat Kilometre), RPK (Revenue Passenger Kilometre) and cabin factor yield. The limitations relating to the performance measuring tools utilising inventory system data, is the inability for continuous measurement and the isolation of the impact to revenue due to the RMS on its own. In seeking to gauge the performance of the O&D optimisation, the Revenue Opportunity Model (ROM) is applied. ROM is a post departure measuring tool utilised to continuously measure and isolate the contribution of the RMS on SAA’s O&D network. The revenue opportunity achieved versus the potential revenue was assessed. A revenue comparison of the airlines 2014 and 2015 financial year is performed. The results of the analysis showed the O&D optimisation yielded positive revenue capture on routes that applied the correct optimisation strategy. Recommendations on the optimisation strategy to be applied on routes having average or low revenues captured are presented. The aim is to provide the SAA revenue management department with tangible solutions that would result in increased revenue for the SAA network.
- Full Text:
- Date Issued: 2017
- Authors: Githiri, Duncan Wanjau
- Date: 2017
- Subjects: Revenue management , Airlines Finance , Performance Measurement , Airlines Rates Mathematical models , South African Airways
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/59188 , vital:27455
- Description: Revenue Management (RM) in the airline industry is the practise of selling fixed capacity as a service over a finite time horizon. The market is characterised by the customers’ willingness to pay different prices for the service. This creates the opportunity to target different customer segments and use price differential to attain the optimal passenger fare mix to maximise revenue. The aim is to maximise revenue and an airline can expect revenue increase of between 3 to 7 percent with the successful implementation of a Revenue Management system. The question of whether the revenue increase can be attributed to the RMS is crucial in determining its level of success and validating the optimisation strategy applied (Rannou and Melli, 2003). South African Airways (SAA) migration from Leg-based optimisation to Origin-Destination (O&D) network based revenue management optimisation created the opportunity for this study to measure and evaluate the RMS performance. Revenue performance measuring tools using inventory systems data to measure RMS performance, ASK (Available Seat Kilometre), RASK (Revenue per Available Seat Kilometre), CASK (Cost per Available Seat Kilometre), RPK (Revenue Passenger Kilometre) and cabin factor yield. The limitations relating to the performance measuring tools utilising inventory system data, is the inability for continuous measurement and the isolation of the impact to revenue due to the RMS on its own. In seeking to gauge the performance of the O&D optimisation, the Revenue Opportunity Model (ROM) is applied. ROM is a post departure measuring tool utilised to continuously measure and isolate the contribution of the RMS on SAA’s O&D network. The revenue opportunity achieved versus the potential revenue was assessed. A revenue comparison of the airlines 2014 and 2015 financial year is performed. The results of the analysis showed the O&D optimisation yielded positive revenue capture on routes that applied the correct optimisation strategy. Recommendations on the optimisation strategy to be applied on routes having average or low revenues captured are presented. The aim is to provide the SAA revenue management department with tangible solutions that would result in increased revenue for the SAA network.
- Full Text:
- Date Issued: 2017
Case study : profitability drivers in the South African airline industry : a comparative analysis of SAA and Comair
- Authors: Batidzirai, Davison Herbert
- Date: 2015
- Subjects: South African Airways , Comair Limited , Airlines -- South Africa , Corporate profits -- South Africa , Organizational effectiveness -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:846 , http://hdl.handle.net/10962/d1017191
- Full Text:
- Date Issued: 2015
- Authors: Batidzirai, Davison Herbert
- Date: 2015
- Subjects: South African Airways , Comair Limited , Airlines -- South Africa , Corporate profits -- South Africa , Organizational effectiveness -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: vital:846 , http://hdl.handle.net/10962/d1017191
- Full Text:
- Date Issued: 2015
Factors affecting a performance management system at South African Airways
- Authors: Qabaka, Brenda
- Date: 2012
- Subjects: South African Airways , Performance standards -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/8360 , vital:26349
- Description: Many organisations are continuously searching for methods which can be used to improve performance. The balanced scorecard is a management system that enables organisations to clarify their vision and strategy and translate them into action. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve centre of an enterprise. A prerequisite for implementing a balanced scorecard is a clear understanding of the organisations vision and strategy. The basis for the vision and the strategy should be the holistic view and the information management receives during systematic strategy work. The research study addresses the integration of South African Airways (SAA) strategy with the performance management system. A comprehensive literature study was performed on performance management and the balanced scorecard. Questionnaires, developed from the literature study, were distributed amongst randomly selected respondents, in order to establish the extent to which South African Airways manages performance. The opinions of the various respondents were compared with the guidelines provided by the literature study in order to identify the best approach of performance measurement to be implemented at South African Airways. The final step of this study entailed the formulation of recommendations. These recommendations are regarded as critical to ensure the successful implementation of a performance management system at South African Airways. The following main recommendations were made: Although the empirical study revealed that South African Airways shares its strategic objectives with its management, it is highly recommended that a balanced scorecard should be used as a measuring approach for performance at South African Airways; Before any organisation can start implementing a balanced scorecard it needs a clear understanding of its vision and strategy. It is the management’s responsibility to define a vision, formulate a strategy and set strategic goals regardless of a balanced scorecard being implemented; The implementation of a balanced scorecard should always be organised as a separate project. Several different procedures describing the building process of a balanced scorecard have been presented. The research shows that, to increase the chance of a successful scorecard implementation, regular feedback must be provided to all employees and managers must hold people accountable for using the system.
- Full Text:
- Date Issued: 2012
- Authors: Qabaka, Brenda
- Date: 2012
- Subjects: South African Airways , Performance standards -- South Africa
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/8360 , vital:26349
- Description: Many organisations are continuously searching for methods which can be used to improve performance. The balanced scorecard is a management system that enables organisations to clarify their vision and strategy and translate them into action. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve centre of an enterprise. A prerequisite for implementing a balanced scorecard is a clear understanding of the organisations vision and strategy. The basis for the vision and the strategy should be the holistic view and the information management receives during systematic strategy work. The research study addresses the integration of South African Airways (SAA) strategy with the performance management system. A comprehensive literature study was performed on performance management and the balanced scorecard. Questionnaires, developed from the literature study, were distributed amongst randomly selected respondents, in order to establish the extent to which South African Airways manages performance. The opinions of the various respondents were compared with the guidelines provided by the literature study in order to identify the best approach of performance measurement to be implemented at South African Airways. The final step of this study entailed the formulation of recommendations. These recommendations are regarded as critical to ensure the successful implementation of a performance management system at South African Airways. The following main recommendations were made: Although the empirical study revealed that South African Airways shares its strategic objectives with its management, it is highly recommended that a balanced scorecard should be used as a measuring approach for performance at South African Airways; Before any organisation can start implementing a balanced scorecard it needs a clear understanding of its vision and strategy. It is the management’s responsibility to define a vision, formulate a strategy and set strategic goals regardless of a balanced scorecard being implemented; The implementation of a balanced scorecard should always be organised as a separate project. Several different procedures describing the building process of a balanced scorecard have been presented. The research shows that, to increase the chance of a successful scorecard implementation, regular feedback must be provided to all employees and managers must hold people accountable for using the system.
- Full Text:
- Date Issued: 2012
- «
- ‹
- 1
- ›
- »