The Impact of Yield Management in the Airline Industry on Customers’ Feelings of Price fairness

airfare-300x202The practice of Yield management has been widely adopted by service organizations in the past three decades. Yield management originally started in the airline industry and this capacity management strategy is also most often applied by airlines. The practice of yield management, especially in the airline industry, has been discussed in many different studies. There is, however, limited empirical research on the effects on business-to-business relationships and knowledge on how the feelings of price fairness affect loyalty. This research paper will discuss the differences in perception and reactions of both business and leisure travelers. The main goal of this research is  to give answers to the question: What are the impacts of yield management in the airline industry on customers feelings of price fairness and how does it affect loyalty?
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Book Review Airline Marketing and Management – 7th Edition by Stephen Shaw

Airline-Marketing-Management-7th-ed-9781409401476-195x300This leading textbook on airline marketing offers a review of both the air transport market and the marketing environment, followed by an examination of airline business and marketing strategies. The second part of the book details the wide range of marketing activities, such as product design and management, pricing and revenue management, distribution channels, and selling, advertising and promotional issues.
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A New Airport in Durban: Assessing the Direct Effects on the Local Population

Durban-1024x693In May 2010, the new King Shaka International Airport (KSIA) was opened in South Africa, an emerging economy for which integration into the world economy is an important objective. Being developed as part of a trade and investment hub, the new airport serves as a case for infrastructural mega-projects, of which many are increasingly built around the world to attract investors and generate economic growth. Their positive effects on society are however disputed. This article assesses the extent to which this new airport in Durban has directly benefited the local population in terms of employment generation and economic development.

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Flight-to-Gate Assignment: Methods and Complexities at Different Planning Horizons

nagoya-300x221The flight-to-gate assignment problem is encountered by gate managers and capacity planners at airports in general on a periodic basis. The ‘sense of urgency’ for notifying and managing the imbalances of demand for and supply of gates in an early stage grows due to the higher occupation rate of gates compared to previous years at Amsterdam Airport Schiphol (AAS). Capacity planners need computational tools for capacity analyses to face the complex decision making process on gate infrastructure and procedures. Current methods described in literature for the flight-to-gate assignment problem are reviewed.

Subsequently, the most appropriate method for capacity planning on tactical level is chosen and reasoned. Since the flight-to-gate assignment problem has the characteristics of a NPhard class of problem there is no known algorithm for finding the optimal solution within a polynomial-bounded amount of time. Several attempts to find sub-optimal solutions to the flight-to-gate assignment problem are made and described in literature, however practical usability and tests with a large set of data is missing. Available commercial tools are based on the rule-based technique and a heuristics scheduling method to find a near-optimal solution. Based on the arguments described in the previous two sentences it is suggested to use the rule-based technique with a heuristic method for the decision support tool at AAS.

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Book Review: The Passenger Has Gone Digital and Mobile by Nawal Taneja

the-passenger-has-gone-digital-and-mobile-200x300The internet revolution in mid 1990s has made the customer “king”. But actually this claim has not been realized as effectively as in the recent years as mobile technologies gathered pace along with social media applications. The aviation guru Nawal Taneja successfully explains this phenomenon in his book, which is the 7th of a series began in 2002. He emphasizes the changing relation between companies and their customers as new technologies enable them to rule the market.

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New Berlin Brandenburg Airport. Good Things Come to Those Who Wait?

brandenburg_airport_berlin_germany-300x159Berlin’s airport system is undergoing massive transformation – three airports are being merged into one. The new Berlin Brandenburg Airport BER “Willy Brandt,” blazoned as hub for the capital region, will replace the existing multi-airport system presumably in 2013. Thus, the spatial economic concept pursued by regional and local planning authorities supported by Berlin’s airport authority FBB aims at a strategically integrated axis from the new BER airport to Berlin’s inner city and its new main train station. But how can sustainable development in the airport vicinity be encouraged in terms of urban quality, connectivity, economic balance, green development and quality of life? The article will give an overview of the airport related development in Berlin Brandenburg and introduce the pilot project “fAIRleben – Sustainable development in close proximity to an infrastructure mega project”

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Impact of Price Regulation on Airport Charges

priceAirport Charges and Price Regulation in Germany

As part of the master program Transport and Supply Chain Management (TSCM) at VU University in Amsterdam I did a thesis research concerning the impact of price regulation on airport charges.The research was aimed to provide an answer to the literature discussion whether airports have the incentive to charge excessive tariffs and if they do so whether price regulation is the right method to avoid this incentive. Results and insights gained from the thesis research will be treated in this article.
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