Case Study: Cathay Pacific
REDUCING THE REVENUE LOSS TO CATAHAY PACIFIC DUE TO UNOCCUPIED SEATS
INTRODUCTION:
It is very important for any airliner to fill all the seats in order to generate revenue. But most of the times, it is found that some airliners operate with few empty seats. There are many situations where a lot of passengers end up getting an empty seat next to them. Those passengers are lucky enough to have a luxury of using the unoccupied seat but airliners are facing a huge revenue loss due to vacant seats in their operations. I was lucky to get an empty seat next to me twice, when I was travelling with Cathay Pacific. There are also some people who always wish to have an empty seat next to them like me. So this is an opportunity for airliners to reduce …show more content…
I would like to recommend a strategy to Cathay Pacific which would help them to reduce the revenue loss in their operations with unoccupied seats. They could target the passengers, who are actually ready to pay extra money to enjoy the luxury of having an empty seat next to them. Cathay Pacific can update its pricing scheme, where the passengers can pay extra 20% on ticket price to rearrange their seat next to the empty seat. It is also to be mentioned in prior that the passengers will get their extra 20% as a refund if all the seats are …show more content…
There are certain competitive advantages for Cathay Pacific in providing service, which cannot be influenced by changing prices. There are no barriers to entry for the competitors as airline industry is huge and this particular strategy can be easily adopted by the other airliners. There is no possibility of any legal issues as a strategy cannot be considered to an intellectual property or patented either. As Cathay Pacific is considered to be one of the best and largest airliners, the company can use its existing networking system in implementing the new
INTRODUCTION:
It is very important for any airliner to fill all the seats in order to generate revenue. But most of the times, it is found that some airliners operate with few empty seats. There are many situations where a lot of passengers end up getting an empty seat next to them. Those passengers are lucky enough to have a luxury of using the unoccupied seat but airliners are facing a huge revenue loss due to vacant seats in their operations. I was lucky to get an empty seat next to me twice, when I was travelling with Cathay Pacific. There are also some people who always wish to have an empty seat next to them like me. So this is an opportunity for airliners to reduce …show more content…
I would like to recommend a strategy to Cathay Pacific which would help them to reduce the revenue loss in their operations with unoccupied seats. They could target the passengers, who are actually ready to pay extra money to enjoy the luxury of having an empty seat next to them. Cathay Pacific can update its pricing scheme, where the passengers can pay extra 20% on ticket price to rearrange their seat next to the empty seat. It is also to be mentioned in prior that the passengers will get their extra 20% as a refund if all the seats are …show more content…
There are certain competitive advantages for Cathay Pacific in providing service, which cannot be influenced by changing prices. There are no barriers to entry for the competitors as airline industry is huge and this particular strategy can be easily adopted by the other airliners. There is no possibility of any legal issues as a strategy cannot be considered to an intellectual property or patented either. As Cathay Pacific is considered to be one of the best and largest airliners, the company can use its existing networking system in implementing the new