REVENUE MANAGEMENT IN AUSTRALIA PROCESS 2022

Hi, I need this assignment by monday. This assignment requires based on the organisation in case study 1, so I have attached my assignment 1 for more informations.

Running Head: REVENUE MANAGEMENT 0
Virgin Airlines
Revenue Management
Case Study
Student Name:
Student University:

REVENUE MANAGEMENT 1
Contents
Introduction................................................................................................................................2
Case Study: Virgin Airlines.......................................................................................................2
Revenue Managers Skills.......................................................................................................2
Distribution Channels.............................................................................................................3
Trends in Tourism and Hospitality industry..........................................................................3
Current Strategies...................................................................................................................4
Stakeholders...........................................................................................................................5
Conclusion..................................................................................................................................5
Bibliography...............................................................................................................................6

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Introduction
Revenue Management is helpful for assuming the demand of the consumer to improve
record and price availability for increasing profit expansion. It is something to sell at a low
price in the present if not expecting the higher demand. It is for challenging the resources that
are important for collecting information about the market to be active and not responsive. It
helps in dividing the market through information and products adjustments through
distribution, to the right consumer at the right time and at the right price. Revenue
Management is used mostly in the tourism and hospitality industries as it allows them to
expect demand and enhance availability and pricing for achieving the best financial results
(Denizci Guillet & Mohammed, 2015).
In airline industries, there are challenges to face but the companies focus on
increasing profits, productivity and improving customer experience with an awareness of
market changes. For fighting with those challenges and other aspects, it is important for an
alternative technology solution to support airlines’ companies for total revenue improvement.
Airlines provide the best practices in pricing and revenue management where they invest a lot
for developing systems and estimating demand, availability of stock, monitoring, and
countering competitors’ price in the market for competitive advantage and high revenues; in
all this process and practices, technology is a must (Wu, 2016). In this report, the case study
is about Virgin Airlines discussing the skills of revenue managers, distribution channels and
communication strategies with stakeholders to know the impact of revenue management on
distribution and revenue management.
Case Study: Virgin Airlines
In Australia, Virgin Airlines is the second well-known huge airlines whose CEO is
John Borghetti, entitled as Pacific Blue Airlines before which was a low-cost carrier (LCCs)
and now functions a full-service model, targets high-profit business movement while looking
at the low-cost base with maintaining its core free-market share (Lohmann & Trischler,
2017).

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Revenue Managers Skills
Mainly, revenue managers’ skills are in relation to accounting and finance,
technology, industry analysis, and communication skills. They monitor the company’s
accounting department for financial stability and keep tracts of sales and reservations in the
airline industry (Cook & Billig, 2017). According to the case study of Virgin Airlines, the
skills revenue managers hold are to plan, monitor and implement strategies for increasing
profits, which includes relationship management for consumer satisfaction; competitive
nature; their analytical skills to know trends and find opportunities, and innovative IT and
support systems for improving the market position and networks. In addition, to estimate the
gaps in the company’s current functional processes and take steps for improvement as top-
level management (Mayo, Nohria, & Rennella, 2016).
Distribution Channels
The distribution channel is a chain of mediators for goods and services, which
consists of wholesalers, retailers, distributors, and even internet to reach to its final consumer.
In airlines, distribution channels are direct and indirect. The direct channel consists of sales
offices, call centres, website and business travel website whereas indirect channel consists of
traditional travel mediators, on-line travel mediators, and tour operators and connectors (Law,
Leung, Lo, Leung, & Fong, 2015).
Virgin Airlines uses social marketing platforms, digital market platforms and starts a
marketing campaign for connecting to customers as distribution channels, which can be
included through traditional media or digital forms of advertising as a global distribution
system (GDS). This will help the customer to not only buy the tickets but also make the
purpose of check-ins, determine arrival time and facilities on special request, and looking for
different food menu options after boarding the flight a lot easier; for providing best customer
experience (Wittman & Belobaba, 2019).
Trends in Tourism and Hospitality industry
The new emerging trends in Virgin Airlines is the increase in demand for traveling
where they spend extra money to advance better seats and meals and innovation in
advertising and online promotions for targeting and attracting customers. To support these
emerging opportunities or new possibilities for an increase in financial results, the solution as
revenue management is important. There are always new challenges to face for airline
industries related to geography and business model to include an increase in profits, different

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distribution models and for customer experience identification. Nowadays, airlines work
capably to collect, and process and analyse the data and respond to them for shifting market-
changing aspects (Vinod, 2011). They implement a customer-centric strategy as a fresh
approach to achieve revenue objectives and for competitive advantage by making their travel
experience better and lively. The solution provided by airlines is with an improved user
interface using sales and services tools adding account support and active pricing. In the
future, the focus will be on technology, data and trading company distribution to connect
travellers and making productive ways. The distribution incorporates closeness, uniqueness,
and creativeness (Belobaba, Odoni, & Barnhart, 2015).
Current Strategies
Virgin Airlines implemented strategies for increasing total revenues or customer base,
which includes marketing expenditure increment for promotions and introducing new offers
for setting a competitive price for the target audience. It is necessary to attract customers for
the purchase of their flights by offering them different offers and promotions (Cui & Li,
2017). The idea of choosing a high-price-less-volume strategy is to earn more profits but
there is a need to implement mechanisms to analyse performance to know whether the
implementation strategies are working or not as per the expectations or not. Mainly, the
current management strategy of Virgin Airlines is to focus on the current target audience and
fulfil its requirements related to products and services. The company should be globally
present to estimate the change of competition in the market. Precisely, this company consists
of pricing, inventory, promotions and channels strategies for restructuring prices, products
and processes to increase profits in the market, which also includes target audience,
promotions, market share, subsidiary, and cash flow or risk tolerance strategy. These
strategies mentioned above differentiated based on schedule, products, and pricing in case of
revenue management of the company (Bazargan, 2016). The scheduling strategy help the
airlines to focus on certain markets to face their competitors; product strategy of Virgin
Airlines set advantage with unique customer experience and pricing strategy, when the
company positioning itself as a travel company and focuses on reducing base fare and
generate high profits.
In revenue management, strategies in airline industry of target audience is based on
the type of passengers to set fares and give seats according to it after identifying the value for
solution of market divisions availability to target. The advertising and promotions for the

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ones who are eager to travel where airline industry think to maximise the profits through
taking a lead in the full service airline market by setting the pricing structure to support brand
image for increasing market share and achieving the competitive advantage. The airline
revenue management is either a strategic tool or not a strategy on its own.
Stakeholders
The stakeholders involved within the organization are top-level management and
employees when there is a need to earn profits and make sure to give affordable customer
experience by estimating business gaps and overcoming challenges with establishing new
products and channels through promotion and advertising. The top-level management
communicates strategies with employees to implement them for generating revenues and
increasing customer base (Holloway, 2017). The demand estimation is important in airline
revenue management for booking control policies for not resulting in bad performance. To
maintain the competitive advantage, airlines made advance development techniques like
revenue management, which helps in increase in profits by managing supply and demand
through price management. The functioning of maintaining this management is the part of
top-level management and employees.
Conclusion
To conclude, living in today’s generation faces many challenges to deal with, majorly
the competitive environment of industries where the top-level-management role had
increased to focus on distribution channel and revenue management for success. The
strategies are to implement improving customer experience and productivity to earn profits.
Some factors can affect the industry like politics and trade, global and national economies,
technology innovation and access, and the conditions such as fuel costs, airport access, and
airline start-ups and mergers in the airline industry. Technology, products, and services for
customer and acceptance of trading by smart transporters are factors that can affect the airline
distribution through GDS. The creativity is important by taking a step to initiate airlines and
airline and travel technology industries or start-ups globally; technology is popular within
investors and other investment of capital industries in the airline and travel-related
distribution companies. The money is also important for an airline industry success to
increment in market share.

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Bibliography
Bazargan, M. (2016). Airline Operations and Scheduling. London: Routledge.
Belobaba, P., Odoni, A., & Barnhart, C. (2015). The Global Airline Industry. New Jersey:
John Wiley & Sons.
Cook, G., & Billig, B. (2017). Airline Operations and Management. London: Routledge.
Cui, Q., & Li, Y. (2017). Airline efficiency measures under CNG2020 strategy: An
application of a Dynamic By-production model. Transportation Research Part A:
Policy and Practice, 106, 130-143.
Denizci Guillet, B., & Mohammed, I. (2015). Revenue management research in hospitality
and tourism: A critical review of current literature and suggestions for future research.
International Journal of Contemporary Hospitality Management, 27(4), 526-560.
Holloway, S. (2017). Airlines: Managing to Make Money. London: Routledge.
Law, R., Leung, R., Lo, A., Leung, D., & Fong, L. H. (2015). Distribution channel in
hospitality and tourism. International Journal of Contemporary Hospitality
Management, 27(3), 431-452.
Lohmann, G., & Trischler, J. (2017). Licence to build, licence to charge? Market power,
pricing and the financing of airport infrastructure development in Australia. Transport
Policy, 59, 28-37.
Mayo, A., Nohria, N., & Rennella, M. (2016). Entrepreneurs, Managers, and Leaders: What
the Airline Industry Can Teach Us About Leadership. New York: Springer.
Vinod, B. (2011). The Future of Airline Distribution and Revenue Management. In Y. I, &
M.-B. U, Revenue Management (pp. 86-107). London: Palgrave Macmillan.
Wittman, M., & Belobaba, P. (2019). Dynamic pricing mechanisms for the airline industry: a
definitional framework. Journal of Revenue and Pricing Management, 18(2), 100-
106.

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Wu, C.-L. (2016). Airline Operations and Delay Management. London: Routledge.