How would you devise an inventory control strategy for a new airline route? Watch

floatr
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This is a interview question for an airline job. Any thoughts?

We have a high density route (say ABC) which is also served by many carriers. The market fares offered by other competitors on the route are very aggressive thus limiting our ability to dictate or increase fares unilaterally.


Demand on the route in the outbound direction (into ABC) is a mix of one-way and round trip itineraries from various points in the network to A (via our HUB in DXB) with the primary segment being labour.
There is also a smaller segment of family travel on the outbound direction which primarily buys return tickets and can afford a higher fare than the labour traffic.

On the return direction (from ABC) there is very high demand for one-way labour passengers to various points in the network.
Return traffic is less than 10% of the demand in this direction.

How would you devise an inventory control strategy for such a route?

• How many round trip pax will you accept on the return direction?
• How will you ensure family segment gets seats when they require?
• What pricing techniques can be used to ensure revenue maximization?
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455409
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If you don't know the answer yourself are you sure you're the right person for the job?
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traintracks1995
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(Original post by floatr)
This is a interview question for an airline job. Any thoughts?

We have a high density route (say ABC) which is also served by many carriers. The market fares offered by other competitors on the route are very aggressive thus limiting our ability to dictate or increase fares unilaterally.


Demand on the route in the outbound direction (into ABC) is a mix of one-way and round trip itineraries from various points in the network to A (via our HUB in DXB) with the primary segment being labour.
There is also a smaller segment of family travel on the outbound direction which primarily buys return tickets and can afford a higher fare than the labour traffic.

On the return direction (from ABC) there is very high demand for one-way labour passengers to various points in the network.
Return traffic is less than 10% of the demand in this direction.

How would you devise an inventory control strategy for such a route?

• How many round trip pax will you accept on the return direction?
• How will you ensure family segment gets seats when they require?
• What pricing techniques can be used to ensure revenue maximization?
Are you applying for a revenue management role?
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floatr
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Report Thread starter 6 years ago
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Yes, I came across this question posted by flydubai at www.gapjumpers.me/qs-422 and wondered what depth one could go towards answering it.
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