The Implementation Of Yield Management

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

Vicky was in jail for a year due to selling drugs to an undercover cop. For nine years, the reporter (maternal grandmother) raised the children. When Vicky got out of prison, the judge ordered the children back to her. She has been out for a year and a half. According to the reporter, Vicky is using crack. It was unknown if she uses it in the presence of the children. Vicky has been gone from the home for five days, leaving the children home alone. She would go to the neighborhood of William and Son, behind the Four Season Produce, which is a drug area. Vicky would also leave the children home alone for week. Ron (older sibling to the victims) took the children food and noticed the power was off. The power was off because of a power shortage

The purpose of this memorandum is to address the profitability issues at Continental Airlines and to estimate the costs for 2009 to forecast the future outlook of the company. To address these issues, I used regression analysis to observe what effect the 11% reduction in flying capacity would have on the firm’s future operating costs. I also used the results from the regression analysis to verify the costs that, if reduced, would further comply with the implementation of cost-cutting initiatives and operational efficiencies that the company is striving for. Lastly, I consolidated the data to forecast Continental’s financial outlook for 2009, then provided insight

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Revenue is the gross inflow of economic benefits during the period arising in the ordinary course of activities. Revenue should be recognized when the future economic benefits that will flow to the entity can be measured reliably. The recognition criteria are usually applied separately to each transaction, but sometimes and under specific circumstances, it is necessary to apply the recognition criteria to the separate recognizable parts or of a single transaction in order to reflect the substance of the transaction. In aviation industry, the revenue transaction or events takes a significant period of time in order to complete because of the nature of product delivering against the sum of money. The five‐step revenue recognition process for this transaction are as follows:

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

In an airline industry, customers form the core of the organisation and this is achieved by the level of customer satisfaction by voting for the airline. This expresses confidence in the airline. The airline to meet its customers expectations needs to ensure the following is adhered to:

Steps 1, 2,6,7,8,9,10 and 12 are all to do with measuring. This is an important factor when thinking about trying to get as much yield as possible because if the accuracy is wrong we would lose yield and therefore would reduce the final product. For example, during step one, the alcohol has to be poured into the pear shape flask. There is a chance that impurities could attach to the alcohol when being measured out, for instance dust particles going into the flask as well. This could therefore contaminate the yield and would reduce the purity. Also, when pouring the alcohol into the flask,

In terms of major cities, American Airlines holds significant market share of many of the top domestic routes. According to the U.S Department of Transportation Bureau of Transportation Statistics, American Airlines holds 67.43% share of the Dallas/Fort worth Texas market, 67.46% of the Miami Florida market, 16% of the Chicago market, 16.49% of the Los Angeles market and 13.85% of the New York market; these are significant shares as these are cities within the top five domestic routes in the U.S (DOT, 2015a). American Airlines is also a major employer in the aviation industry. As of June 2015, American had 59,905 full time employees and 7,427 part time employees (DOT, 2015b). Although these numbers makes American the fourth largest employer among major carriers, these numbers are significantly lower from their highest levels of 107,311 full and part time employees reached back in August of 2002 (DOT, 2015b). The managerial accounting significance of this fact will be explored in the Activity Based Costing section of this

The Airline industry has experienced continual problems with rising costs with both fuel and maintenance which has caused them to increase their fees to the consumers to pay for those rising costs. This paper will help explain what an airline such as Delta does to help alleviate such costs without forcing its consumers to flip the bill through high fees that consist of tickets, baggage fees and food. The costs of doing business in aviation today have spiraled out of control making it very expensive for both airlines and the

Airlines use a formula of combining their yield and inventory costs to determine ticket prices. While it is imperative to focus on the idea of being profitable, the focus is to maximize the cost of the flight revenue. One huge factor that encourages an increase in the cost of tickets relates to a customer ordering a ticket close to the departing date, define this as a risk factor because they need to make up for all unsold seats. A high percentage of the revenue is dedicated to overhead costs such as fuel and labor. When a ticket price is higher with one airline than the other, the customer interprets this as being an excessive cost. The demand is greatly affected by the external market

Upon review on a profile of a successful company we see Southwest Airlines as a prime example. Their ability to recognize weakness in their management system and adjust strategies has allowed them to emerge as a leader in the US airline industry. Southwest is the largest US low fare carrier with low fare rates, no additional fees and excellent customer service. Southwest Airlines currently has one of the most innovative management practices in the US to date. A review of the critical elements of Southwest Airlines proves to be effective and innovative.

Ferguson, M. E., Crystal, C. R., Higbie, J., & Kapoor, R. (2007). A Comparison of Unconstraining Methods to Improve Revenue Management Systems (ed. 3).

a. Increase the productivity of yield-management specialists and the reduction in work load can allow them to spend more time reviewing only critical flights thus making better revenue decisions.

Fares Management-To enable Malaysia Airlines to distribute fares more efficiently around the world and to improve pr icing decisions.