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This content is taken from the École Nationale de l'Aviation Civile's online course, An Introduction to Pricing Strategy and Revenue Management. Join the course to learn more.

Skip to 0 minutes and 8 secondsThe pricing simulation game that you just played was a warm-up for the big game that comes next. You have now reached a good level of understanding of revenue management techniques and should be ready to face a competitor to your airline. You will now play a game that is the most important activity of the week, if not of the whole course.

Skip to 0 minutes and 30 secondsThis game has a mandatory goal: you should have a profit at the end of the last year. If your airline has made a profit, the simulation will provide a message and a code. Make a note of the code, as you will need it in the test that follows to confirm that you have played the game until the end and made some profit. If your airline has not made a profit, you can replay the game as many times as you want. As usual, there will be slides and explanations throughout the game.

Skip to 1 minute and 3 secondsLet me give you some advice on the game: You competitor is an experienced player, but your goal is not to win against your competitor. You goal is to make profit, never forget that.

Skip to 1 minute and 17 secondsSometimes, clever choices lead to a situation that is good for both airlines. This is a much better solution than winning a game where both airlines are competing so badly that neither make a profit.

Skip to 1 minute and 34 secondsIn that case, regardless of who scores highest, you lose.

Skip to 1 minute and 40 secondsUse your past decisions and those of your competitor to

Skip to 1 minute and 44 secondsunderstand the demand: review what you have offered on the market, for example, your prices and your planes’ capacities, and analyse how the market has reacted.

Skip to 1 minute and 57 secondsAs in the previous games, there is a peak and an off-peak period each year.

Skip to 2 minutes and 2 secondsThe novelty is that you will now have to take strategic decisions concerning the capacity of your planes and the number of roundtrips before the year starts.

Skip to 2 minutes and 14 secondsYou will not be able to revise those decisions during the year. So, the capacity and features of the service that you and your competitor are offering on the market will be the same during both peak and off-peak periods. I’m sure you will manage your prices well and make a profit at the end. Please do share your views and strategies with your fellow learners in the discussion – this is an excellent opportunity to learn from one another.

Skip to 2 minutes and 45 secondsAfter this activity, some revenue management experts will share their views on the pros and cons of some new online practices, such as IP tracking, and OS detection. We will also imagine the future of revenue management and how it can be applied to many different sectors, such as the camping industry.

Skip to 3 minutes and 7 secondsAs usual, before the final test, we’ll provide a wrap-up of the week that, along with the three previous weeks’ wrap-ups, will provide a written summary of the entire course. Enjoy this week, and good luck!

Ready to play the final game?

The pricing simulation game is like a real life situation.

You have to take decisions, and if those are bad, your competitor may attract most of the customers. Even worse, both airlines may lose money if the competition is too tough, while there is room for lots of profit. Before you play the game, here is some advice.

Check the DONWLOADS section to access a printable version of the slides included in this video.

The pricing simulation game starts in the next step!

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This video is from the free online course:

Manage Your Prices: an Introduction to Pricing Strategy and Revenue Management

École Nationale de l'Aviation Civile

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