Published March 14, 2024 | Version v1
Journal article Open

Optimizing Airline Revenue Management through KPI-Driven Strategies: A Comprehensive Analysis of Industry Practices

Authors/Creators

  • 1. ROR icon Tarbiat Modares University
  • 2. Payame Noor University

Description

This study delves into the intricate dynamics of Key Performance Indicators (KPIs) in the airline industry, underscoring their pivotal role in refining revenue management strategies. It presents a comprehensive examination of various KPIs, elucidating their direct impact on enhancing operational efficiency, demand forecasting accuracy, and pricing optimization. Through a meticulous analysis, the research unveils how strategic implementation of KPIs can significantly uplift an airline's profitability and market competitiveness. Furthermore, it highlights the emerging trends, such as the integration of advanced analytics and customer-centric approaches, that are set to redefine the future landscape of airline revenue management. The findings contribute valuable insights, offering a roadmap for airlines to harness the power of KPIs effectively in navigating the complex and dynamic aviation market.

Files

Optimizing Airline Revenue Management through KPI-Driven Strategies A Comprehensive Analysis of Industry Practices KPICit25.pdf

Files (220.5 kB)

Additional details

Additional titles

Alternative title (Persian)
بهینه‌سازی مدیریت درآمد خطوط هوایی از طریق راهبردهای مبتنی بر شاخص‌های کلیدی عملکرد: تحلیلی جامع از رویه‌های صنعت

References

  • MoghadasNian, S. A. H. (2022). Flight to Excellence: A Comprehensive Guide to Key Performance Indicators in the Airline Industry. Unlocking Success Through Data-Driven Strategies and Performance Metrics. Aviation and Tourism Research and Innovation Center (ATRIC).
  • MoghadasNian, S. A. H. (2021). Above the Clouds: The Definitive KPI Guide for the Chief Executive Officer of Airlines (CEOA). Harnessing Powerful Metrics to Soar in the Airline Industry. Aviation and Tourism Research and Innovation Center (ATRIC).
  • Mohammed, A. R. (2016). Establishing Effective Key Performance Indicators (KPIs) as Part of Performance Measurement System in Airline Enterprises (Egypt Air: Case Study). International Journal of Heritage, Tourism, and Hospitality, 7.
  • Kang, N., Zhao, C., Li, J., & Horst, J. (2016). A Hierarchical structure of key performance indicators for operation management and continuous improvement in production systems. International Journal of Production Research, 54, 6333–6350.
  • Janakova, M., Suchanek, P., Padysak, P., & Botlik, J. (2020). The KPI Hierarchy for CRM and Marketing. International Journal of Geographical Information Science, 15, 263-277.
  • Khairat, G. (2017). The Balanced Scorecard Approach as a Tool for Performance Evaluation in the Airline Companies. International Journal of Heritage, Tourism, and Hospitality, 10.
  • MoghadasNian, S. A. H. (2023). Strategica Aeronautica: Mastering KPI-Driven Leadership Across the Airline and Tourism Ecosystem. A Comprehensive Guide for Executives: From Analytic Hierarchy Process to Zero-Based Budgeting, Navigate the Full Spectrum of Strategic Decision-Making Metrics. Aviation and Tourism Research and Innovation Center (ATRIC).
  • Magnini, V., Crotts, J., & Calvert, E. (2020). The increased importance of competitor benchmarking as a strategic management tool during COVID-19 recovery.
  • Vinod, B. (2015). The expanding role of revenue management in the airline industry. Journal of Revenue and Pricing Management, 14, 391-399.
  • Khairat, G. (2017). The Balanced Scorecard Approach as a Tool for Performance Evaluation in the Airline Companies. International Journal of Heritage, Tourism, and Hospitality, 10.
  • Venkat, R. (2007). The era of convergence in revenue management. Journal of Revenue and Pricing Management, 6, 306-308.
  • Vinod, B. (2008). The continuing evolution: Customer-centric revenue management. Journal of Revenue and Pricing Management, 7, 27-39.
  • Zaki, H. (2000). Forecasting for Airline Revenue Management. The Journal of Business Forecasting Methods & Systems, 19, 2.
  • An, J., Mikhaylov, A., & Jung, S.-U. (2021). A Linear Programming approach for robust network revenue management in the airline industry. Journal of Air Transport Management, 91, 101979.
  • Paethrangsi, N. (2021). Maximizing revenue in the airline industry through air cargo operations. E3S Web of Conferences.
  • Gautam, N., Nayak, S., & Shebalov, S. (2021). Machine learning approach to market behavior estimation with applications in revenue management. Journal of Revenue and Pricing Management, 20, 344-350.
  • Tiwary, S. K., Barge, P., & Sonwaney, V. (2020). Inventory Management KPIs, Tools and Techniques with Conflict Handling.
  • MoghadasNian, S. A. H. (2021). Vision in the Clouds: The Comprehensive KPI Handbook for Strategic Planning in the Airline Industry. Empowering Strategy with Metrics: A Roadmap to Sustained Success in the Skies. Aviation and Tourism Research and Innovation Center (ATRIC). Tehran, Iran & Milan, Italy.
  • MoghadasNian, S., & Rajol, M. (2024). Artificial Intelligence in Airline Business Management: A Paradigm Shift in the Industry. In Proceedings of the First National Conference on the Application of Artificial Intelligence in Business Management.
  • MoghadasNian, S. A. H. (2015). Flying with Technology: A Guide to Key Performance Indicators in Airline IT. Technology at the Helm: Impactful IT Metrics in the Airline Industry. Aviation and Tourism Research and Innovation Center (ATRIC).
  • MoghadasNian, S. A. H. (2024). Transformative Leadership and Management Styles in Aviation: A Case Study of Mahan Airlines in the Digital Era. Navigating the Future with Data-Driven Innovation and Operational Agility. In Proceedings of the First National Conference of Healthy Society in the Digital Era: An Interpretive and Critical Approach.
  • MoghadasNian, S. A. H. (2011). Building Trust at 30,000 Feet: The Definitive KPI Guide for Customer Relationship Management in Airlines. Leveraging Data to Enhance Customer Loyalty and Personalize the Airline Experience. Aviation and Tourism Research and Innovation Center (ATRIC).
  • MoghadasNian, S. A. H. (2024). Digital Horizons: Transforming Public Health Through Aviation Technologies. In Proceedings of the First National Conference of Healthy Society in the Digital Era: An Interpretive and Critical Approach.
  • MoghadasNian, S. A. H. (2018). Investing in the Clouds: Unveiling the KPIs for Airline Human Capital. People, the Real Wings: Mastering the Human Capital KPIs in the Airline Industry. Aviation and Tourism Research and Innovation Center (ATRIC).
  • MoghadasNian, S. A. H. (2024). Technological Renaissance in Airline: Pioneering Digital Innovations and Their Global Impact. In Proceedings of the 8th International Conference on Electrical Engineering, Computer Science and Information Technology.