Here is the synopsis of our sample research paper on The Effects of Yield Management on the Fortunes of the U.S. Airline Industry. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 9 page paper on the positive financial effects that yield management pricing has had on the major airlines of the U.S., exhibited by a $2.5 billion industry-wide profit after posting losses of over $13 billion over the previous four years combined. With the major airlines' increased financial health, they are better able to compete not only with each other, but against the newer, smaller airlines that would like to create a secondary market in areas not well-served by the major carriers. The major airlines, however, are using all their new-found financial might to drive the smaller ones out of their markets and then follow with increased fares when the threat of competition is gone. Bibliography lists 7 sources.
Page Count:
9 pages (~225 words per page)
File: D0_Yieldmgt.rtf
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Unformatted sample text from the term paper:
manager assessed their current situation: Friday and Saturday nights not only were sold out, but potential ticket purchasers were also turned away after the sell-out point was reached.
At the same time, many midweek performances were to more empty seats than filled ones (Greco 88). Knowing that all seats are not created equally, even in the most popular
orchestra section, the ticket manager and his staff tried each of the 2,200 seats in the opera house and assigned a point value to each based on the view and
the acoustics. Applying price analysis based on the assigned point value of each seat, the ticket manager increased the number of pricing levels from five to nine. Simultaneously,
he raised the price of the already-highest-priced (and those with the greatest assigned point value) seats by 50%, while dropping the prices of 600 others, which were the seats with
the lowest assigned point value. The next season, 1994-1995, the opera house enjoyed a 9% revenue increase using the point value pricing arrangement (Greco 88). And just what does
opera ticket pricing have to do with the airlines? They practice it daily, though under their name of "yield management." Background Between 1990 and 1994, the airline industry
in the United States claimed a cumulative loss of $13 billion. In 1995, however, industry-wide profits were $2.5 million (Gray 68). Saying that "It may be scant consolation
to frequent flyers coping with Ouija-board ticket prices, jammed cabins and Munchkin-friendly coach seats, but the U.S. airline industry has reached cruising altitude" (Gray 68), industry analysts attribute the increased
profits to an industry-wide shift to pricing based on yield management (Hambrick and Cho 659). After being involved in airline consulting for years, Robert Cross has termed the airlines phrase
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