Revenue Management in Airline BusinessLaajuus (5 cr)

Learning objectives

The module is a part of advanced specialization studies in Porvoo Campus competence-based curriculum. The module advances the following competences: analytical and strategic thinking, knowledge and analysis of revenue management practices from airline operations perspective, problem-solving skills, global business intelligence, statistical and trend analysis, savvy use of digital tools.

Contents

• Introduction to revenue management in airline business. Historical aspects of pricing and revenue management policies in aviation.
• Economics of supply and demand in airline business: characteristics and determinants of demand and supply, demand and supply curves, ticket price equilibrium, elasticity of demand.
• Statistical methods used in revenue management: correlation, simple linear regression analysis.
• Price discrimination, spoilage and spillage, basic EMSR model

Starting level and linkage with other courses

Students enrolling in the course should be comfortable with basic mathematical and statistical analysis tools (percent, median, mean), basic airline business profitability calculations, and airline business processes and operations.

Implementation methods, demonstration and Work&Study

Inquiry-based learning; lectures; readings; home assignments

Assessment criteria - grade 1

The student has a limited ability to understand the aspects of the revenue management practices in airline business. S/he has difficulties with strategic thinking and problem solving. S/he is able to use global business intelligence for decision-making and conduct statistical and trend analysis only when aided by others. Her/his understanding of revenue management practices in airline business is very limited. The student can use digital tools, research and development methods only when the task and instructions are given and when aided by other students and the supervisors.

Assessment criteria - grade 3

The student is able to recognize and understand basic aspects of airline revenue management practices rather well. S/he displays some strategic thinking and problem-solving skills. S/he is able to use global business intelligence for decision-making and conduct basic statistical and trend analysis. The student can use a few digital tools, research and development methods. The student is able to operate when the task and instructions are given.

Assessment criteria - grade 5

The student is able to analyse major aspects of the revenue management practices in airline business. S/he is able to think strategically and show problem-solving skills. S/he is able to use global business intelligence for decision-making as well as conduct statistical and trend analysis. The student can use versatile digital tools as well as choose and use relevant research and development methods. S/he has a business-oriented mindset with a focus on profitability.

Learning materials

The instructors use their own teaching materials, and a variety of academic and media sources:
Books on the content topics
E-books and online articles
Companies’ web-portals
Industry related reports and statistics
Relevant media, news agencies, quality press, etc.
Exercises, tests
Case studies
Instructors’ own materials, materials produced by students.