airline price in india
DESCRIPTION
Airline Price in India - Its just a presentation we have to make report on this how airlines industry set their prices and strategies . If anyone needs it you can askTRANSCRIPT
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Airline Price in India
KusumKhushbu
SafaatAshish
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Contents
• Objective• History• Literature review• Data• Findings• conclusion
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Objective
• To discuss airline pricing in India between the top players of the industry and evaluate its strategies.
• Analysis and evaluation of present scenario as well as the future development.
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History
• There have been major changes in aviation industry in the past few years.
• Until 1986• 1986-2003• 2003-2006• 2006 onwards
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Literature Review
• Indian aviation, spreading its wings : Evolution of the industry, its classification, challenges and tax and regulatory framework
• Fair is Fair in deregulation: Market Segmentation & comparison between the customer who pay higher or less for the same product and Types of restrictions
• Airline Pricing - By thomas bertram: Three pricing concepts - Dilution , Customer segmentation , Elasticity
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Continued...
• History of aviation industry in India: major changes in the industry in the past few years
• Indian aviation industry has been going a turbulent phase over the past years high oil prices and limited pricing power
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Commercial aviation
• Related to GDP• Global business and tourism• Liberalisation• Expansion• Challenges
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General Aviation
• GA Market• Industry downtown• Opportunities• Challenges • Current project pipeline• Investment gap
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Data
Source: Company Filings,Bloomberg, ICRA Research
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State-wise representation of % of total flights vs. % of the total population
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Findings :-Key Pricing Concepts
• Dilution – Difference between how much customers are willing to pay and what they actually pay
• Customer Segmentation – People travelling for business for vacation and visiting friends and relatives
• Elasticity – Measure the sensitivity between change in price and quantity of demand
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Evaluate Competitive Pricing actions
• Know your Markets• Know your Products • Know your Competitors
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Know your Markets
• High Market Share/ High yield – Maintain market strength
• High Market Share / Low yield – Leverage market presence to improve yield
• Low Market share / High yield – Segment fare products to avoid dilution from higher fares
• Low Market share / Low yield – Opportunistic pricing develops more demand
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Know your Products
• Schedule• Load factor• Loyalty• Airport/ in flight service
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Know your Competitors
• Price Behaviour• Low Price Strategy • New Services
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Pricing Strategies
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Price Discrimination vs. Product differentiation
• Price Discrimination – The practice of charging different prices for same product with same cost of production
• Product Differentiation – Charging different prices for products with different
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Challenges
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Policy recommendations
• New business models in regional airports• Alternate development models• Incentive to airline operators• Review of route dispersal guidelines
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Types of Fare Restriction
• Advance Purchase requirements • Round Trip Travel• Minimum Stay requirements• Non stop travel / One stop Travel • Day of week / time of day
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Conclusion
• Tremendous opportunities• Remodeling required• Huge investment needed• Changes in policies required• Future outlook
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Thank you....
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