The impact of revenue maximization management on Egypt Air operating results

Document Type : Original Article

Authors

1 Faculty of Tourism and Hotels - Suez Canal University

2 Tourism Studies Department - Faculty of Tourism and Hotels - Suez Canal University

3 Faculty of Tourism and Hotels, Suez Canal University

Abstract

The research aims at showing the yield management role as a tool which was invented by the international airway companies and Egypt air used it. As the aim of using is not only to increase the profits at any way, but to make a policy to control the prices’ distribution and to achieve the profit which helps the company to settle and develop. The study depends on analyzing the output indicators of operating results of Egypt Air from operating results 95/96 up to operating results 2004/2005, to be assured of the following hypotheses: 1-Yield management leads to increasing revenue of seats. 2-Yield management system leads to decreasing the effect of passenger number on the travel revenue. 3-Yield management system leads to optimizing the income of the available resources. The research proved and showed many results; the most important is the capacity the yield management to overcome the periods of inflation on the profit although the company did not get the ideal limit of using the available resources, In spite of using yield management in the year 2000. The study has reached some recommendation among which is : the importance of regular evaluation of yield management in order to stimulate workforce and not be exposed to the routine but a career that depends on innovation, renovation and creative solutions.

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