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High competition in the airline industry causes each airline increases revenue to survive. One of the solution is by implementing revenue management to optimize revenue in the industry which market is segmented such as airline. Differential pricing is one of the most common implemented strategy whic...
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Format: | Final Project |
Language: | Indonesia |
Online Access: | https://digilib.itb.ac.id/gdl/view/16076 |
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Institution: | Institut Teknologi Bandung |
Language: | Indonesia |
Summary: | High competition in the airline industry causes each airline increases revenue to survive. One of the solution is by implementing revenue management to optimize revenue in the industry which market is segmented such as airline. Differential pricing is one of the most common implemented strategy which airlines impose different price for the same passenger class to increase scope of passenger segment so that revenue increasing. The problem comes when determining the seats that should be allocated for each fare class to reach optimal revenue thereby it is required to implement seat inventory control. The other problem comes when booked passengers cancel their ticket and not show at flight departure. For this reason, airlines will accept bookings in excess of the cabin capacity which is known as overbooking. In this final project, determining of seat allocation that uses dynamic EMSR method and comparing it with the result from static EMSR method will be studied, by using case study at PT Garuda Indonesia for Jakarta – Surabaya and Jakarta – Palangkaraya routes. Beside that, determining of overbooking limit uses same case study also will be studied. In the seat inventory control case found that dynamic EMSR method is more optimum than static EMSR method. It can be indicated from total actual revenue of dynamic EMSR method that higher than static EMSR method for both of analyzed routes. The overbooking case of Jakarta – Surabaya route produces overbooking limit in business class which is 17 seats and for economy class which is 102 seats. Jakarta – Palangkaraya route produces overbooking limit in economy class which is 97 seats and business class which is still 16 seats |
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