Airline revenue management performance measurement of South African Airways origin-destination revenue management
- Authors: Githiri, Duncan Wanjau
- Date: 2017
- Subjects: Revenue management , Airlines Finance , Performance Measurement , Airlines Rates Mathematical models , South African Airways
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/59188 , vital:27455
- Description: Revenue Management (RM) in the airline industry is the practise of selling fixed capacity as a service over a finite time horizon. The market is characterised by the customers’ willingness to pay different prices for the service. This creates the opportunity to target different customer segments and use price differential to attain the optimal passenger fare mix to maximise revenue. The aim is to maximise revenue and an airline can expect revenue increase of between 3 to 7 percent with the successful implementation of a Revenue Management system. The question of whether the revenue increase can be attributed to the RMS is crucial in determining its level of success and validating the optimisation strategy applied (Rannou and Melli, 2003). South African Airways (SAA) migration from Leg-based optimisation to Origin-Destination (O&D) network based revenue management optimisation created the opportunity for this study to measure and evaluate the RMS performance. Revenue performance measuring tools using inventory systems data to measure RMS performance, ASK (Available Seat Kilometre), RASK (Revenue per Available Seat Kilometre), CASK (Cost per Available Seat Kilometre), RPK (Revenue Passenger Kilometre) and cabin factor yield. The limitations relating to the performance measuring tools utilising inventory system data, is the inability for continuous measurement and the isolation of the impact to revenue due to the RMS on its own. In seeking to gauge the performance of the O&D optimisation, the Revenue Opportunity Model (ROM) is applied. ROM is a post departure measuring tool utilised to continuously measure and isolate the contribution of the RMS on SAA’s O&D network. The revenue opportunity achieved versus the potential revenue was assessed. A revenue comparison of the airlines 2014 and 2015 financial year is performed. The results of the analysis showed the O&D optimisation yielded positive revenue capture on routes that applied the correct optimisation strategy. Recommendations on the optimisation strategy to be applied on routes having average or low revenues captured are presented. The aim is to provide the SAA revenue management department with tangible solutions that would result in increased revenue for the SAA network.
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- Date Issued: 2017
Middle management communication in the midst of a crisis
- Authors: Mbolekwano, Veliswa A
- Date: 2017
- Language: English
- Type: text , Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10962/52477 , vital:26194
- Description: Crisis communication by organisational top leadership to external stakeholders has been explored in literature, while internal crisis communication dynamics by middle managers with their employees within the organisation has been under studied. This paper pursues an understanding of crisis communication dynamics between middle management and their subordinates by investigating how the Middle Managers/Team Leaders of Makana Brick Manufacturing Firm (MBMF) communicated with their employees in the midst of the Eskom load shedding crisis in 2014. The investigation is not limited only to how they handled or made sense of the crisis, but also examines the effect and efficiency of their daily communication on both employees (subordinates) and operations in pursuing this end. As a foundation and background, the study broadly explores the literature on Crisis Leadership, Crisis and Crisis Communication, which are critical topics to understanding the communication role of the middle managers who were the primary subject of this research. The research was conducted through semi-structured, face-to-face interviews. Nine Team Leaders were interviewed. The data collected was transcribed verbatim and analysed through open coding. In the literature of crisis management, the concept of crisis communication has been extensively examined as a function of crisis management, primarily with regards to the crisis communication strategy, encompassing the actual verbal and nonverbal responses an organisation uses to address a crisis. The findings are generally congruent with the crisis communication literature, and reinforce the importance of efficient internal communication in building a culture of transparency between management and employees, as espoused in the literature reviewed, which in addition presents an invaluable opportunity for employees across all levels to engage in and be informed of the organisation’s priorities and therefore has the potential to dictate the success or failure of any major change or crisis situation. As such, it can be argued that there is a need for the same analytical rigour that is given to external crisis communication to be given to financial or operational measures (Barrett, 2002). For both external and internal stakeholders, human compassion, concern and empathy; faith in legitimate and appropriate actions taken by the chosen organisation spokesperson; and honesty, candidness and openness in communication (Seeger 2006, p. 242) are universal. The quality and the quantity of communication, essentially, affect the level of trust and involvement of employees (Thomas, Zolin & Hartman, 2009), which is particularly relevant in times of crisis (Mazzei & Ravazzani, 2015 p. 322). Trust must be developed with staff through clear, honest communication and transparent actions. These encompass being fair, open in communication and intentions, showing consistency, fulfilling promises and being honest about what middle managers can and cannot communicate to their employees (Farrel & Schlesinger, 2013, p. 125). In this study, face to face communication proved to be the most preferred communication channel because of its rewarding advantages such as direct feedback, two-way communication, relationship building and project collaboration.
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- Date Issued: 2017