Revenue game airline tickets
In this game you are the revenue manager of an airline. In 4 rounds you will try to get the occupancyrate and profit as high as possible. You play against 4 competitors who have the same starting situation.
Goal
The winner of the game is the airline with the highest profit (not yield)
Revenue management is about variable prices.
The game consists of 4 rounds so the players determine the prices 4 times.
The plane will depart from Amsterdam to Rome on January 16th. At the start of the game the plane is empty.
Business class 30 seats
Economy plus 70 seats
Economy class 140 seats
Total 240 seats
The expected number of sold tickets is 1.000 tickets (average occupancy rate 83%).
Each round 250 tickets will be sold for the same departure date. Early bookers in round 1 and last minute bookers in round 4. If the average price of all airlines together is low the number of sold pax is higher. If the average price is high the number of sold tickets is lower
There are no people who will change from business class, economy plus or economy class to another class.
You can never sell more than the number of seats in the plane!
Start prices:
Business class €800
Economy plus €400
Economy class €200
Every round the maximum change of your price is €50 up or down.
There will be an automatic correction if you ignore this rule.
Every round the revenue manager sets the price of the 3 classes.
(business class - economy plus - economy class)
40% of the market will be sold to the airline with the lowest price.
30% to the second lowest price.
20% to the third price
10% to the fourth price
0% to the highest price
First watch the video. Determine you price strategy
and fill in the form of the next round!
As soon as you start the game, complete the game as well. Otherwise you will block other players.