Airline Revenue Management and Pricing
Overview
This unit introduces students to the commercial logic and practical tools used in airline revenue management and pricing. Students will examine how airlines forecast demand, segment customers, assign booking classes, manage seat inventory and spoilage, and use pricing strategies to support commercial performance. The unit also explores the links between revenue management, scheduling, marketing, distribution, sales, loyalty programs, and broader organisational strategy. Students will analyse airline deregulation, growth in air travel, the competitive impact of low-cost carriers, and contemporary approaches to performance monitoring, service marketing, and revenue management organisational models.
Requisites
Assumed Knowledge
AVA80012: Aviation Industry Fundamentals
01-November-2026
30-May-2027
31-October-2027
Unit learning outcomes
Students who successfully complete this unit will be able to:
- Critically analyse the principles of passenger revenue management and their application to commercial aviation
- Evaluate the key factors influencing seat demand
- Appraise pricing as a strategic lever in airline demand management
- Apply technical revenue management skills and strategies in airline contexts
- Interpret and evaluate the different revenue management reports available to assess commercial performance
- Critically evaluate the organisational structures and processes that support effective revenue management
- Synthesise analysis, theory, and contemporary industry evidence on current airline revenue management practices and developments, using individual written communications
Teaching methods
Hawthorn
| Type | Hours per week | Number of weeks | Total (number of hours) |
|---|---|---|---|
| Online Learning Activities |
3.00 | 12 weeks | 36 |
| Live Online Class |
1.00 | 12 weeks | 12 |
| Unspecified Activities Independent Learning |
8.50 | 12 weeks | 102 |
| TOTAL | 150 |
Assessment
| Type | Task | Weighting | ULO's |
|---|---|---|---|
| Assignment 1 | Individual | 25% | 1,2,3,4,7 |
| Assignment 2 | Individual | 35% | 4,5,7 |
| Assignment 3 | Individual | 40% | 5,6,7 |
Hurdle
To pass this unit and meet all Unit Learning Outcomes to a minimum standard, a student must:
(i) complete all assignments; and
(ii) achieve an aggregate mark of 50% or higher.
Students who do not meet hurdle requirements will receive a maximum of 45% for the unit.
Content
- An introduction to revenue management
- Managing passenger demand
- Passenger transportation pricing
- Booking class assignment
- Seat inventory control
- Spoilage management
- Group travel requests and evaluation
- Schedule and capacity adjustments
- Monitoring performance
- Product distribution
- Revenue management organisations
- Loyalty programs
Study resources
Reading materials
A list of reading materials and/or required textbooks will be available in the Unit Outline on Canvas.