8herveg
Topic Author
Posts: 1103
Joined: Tue Aug 29, 2006 2:01 am

Yields, Revenue, O&D...could Someone Explain?

Mon Sep 04, 2006 8:55 pm

Hi guys,

I am a new member to Airliners.net. I found the website about 5 years ago when I suddenly became interested in aviation, but Ive only just joined!!

Could someone please explain to me, with possible examples, what yields and revenue exactly are.

I do actually no what O & D is...origin and destination, but a full explanation would be appreciated.

Many thanks...

George
 
MUCuser
Posts: 22
Joined: Fri Jul 07, 2006 8:41 pm

RE: Yields, Revenue, O&D...could Someone Explain?

Mon Sep 04, 2006 11:42 pm

George,

a couple of pointers, yield is a term we use to describe Revenue per passenger, high-yield traffic is first (if they paid for it, but that's another story), business and full fare economy pax.

O&D, when analysing traffic between two cities we distinguish between traffic that originates from the city pairs only (O&D) and traffic that originates from feeds (hub). Eg O&D traffic between Frankfurt and Washington describes the traffic between these cities only, while actual traffic may be much higher due to LH feeds at the Frankfurt end and people travelling further in the US using IAD as the entry point, and vice versa.

If you are seriously interested I recommend you read "The Economics of International airlines" by Rigas Doganis

cheers
A
 
rpaillard
Posts: 417
Joined: Mon Apr 25, 2005 12:57 am

RE: Yields, Revenue, O&D...could Someone Explain?

Tue Sep 05, 2006 12:39 am

Hi,

Yiled management is a program by itself Big grin

You could find various books regarding this topic on amazon. You could even find somes regarding yields management for Airlines industry.

Basically, the aim on the yiled management is to maximize the revenue thanks to customers profiling.

You could alsl take a look there:
http://en.wikipedia.org/wiki/Yield_management

Regards,
Raphael
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