CA5055 - Airline Revenue and Pricing Management (2026/27)
| Module specification | Module approved to run in 2026/27 | ||||||||||||
| Module title | Airline Revenue and Pricing Management | ||||||||||||
| Module level | Intermediate (05) | ||||||||||||
| Credit rating for module | 15 | ||||||||||||
| School | Guildhall School of Business and Law | ||||||||||||
| Total study hours | 150 | ||||||||||||
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| Assessment components |
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| Running in 2026/27(Please note that module timeslots are subject to change) | No instances running in the year |
Module summary
All successful airlines need to master their market position and technical competencies to ensure success and the management of ‘fares’ is central to this. Pricing and revenue management are at the heart of every airline’s competency and thus of paramount importance. Strategic positions require airlines to understand the competitive environment and the ‘price’ points for both leisure and business travel segments. Pricing and revenue management are therefore critical to survival in the global air travel market.
The module aims to provide students with:
• The global management of air travel demand by understanding concepts such generators of air travel demand linked to the growth of global wealth creation
• An historic perspective in the development of revenue management tools and distribution for commercial airlines
• An appreciation of the manipulation of air travel demand based upon the tools of revenue management including concepts of high season demand, shoulder and low seasonal demand
• An understanding of the importance of the ‘pricing’ airline products and balancing revenue streams in complex systems such as full network airlines
• Development of the pricing strategies and revenue management strategies for different types of airlines business models including low-cost carriers
• To appreciate the opportunities for new revenue streams from ancillary revenues and the de-bundling of airline products
The module also aims to develop students' skills, in particular: academic study skills; IT; literacy; applied analysis; entrepreneurship, critical thinking; interpersonal and team-working; communication, including oral presentation; and problem solving.
Prior learning requirements
NONE
Syllabus
LO1
• Air travel demand
• The decision-making process in airline selection
• Business travel features
• Leisure travel features
• Current air travel demand
• Airline product development linked to ‘fares’ (prices)
• Researching the impact of airline pricing strategies and fares
LO2
• Overview of the historic developments in airline pricing and fares
• The role of IATA in the bank settlement plan
• Mileage fares and the IATA ticketing system
• The development of specialist markets for air travel e.g. groups
• Modern revenue management principles
• Point to point pricing revenue management
• Connecting passenger revenue management
• Differential pricing
• Seat inventory control
• Overbooking / spill
• Sales management strategies for enhanced revenue opportunities
LO3
• Introduction to e commerce and the impact of the internet and e commerce for airline pricing innovation
• Ancillary revenue and de-bundling strategy of commercial airlines
• Emerging trends in airline distribution as a result of e commerce and Online Travel Agents (OTAs)
• Performance monitoring for revenue management
• Operational implications of changes to airline revenue management strategy such as delayed boarding due new cabin baggage procedures
• Implications of down-trading and up-trading due to the four class strategy of full-service airlines
Balance of independent study and scheduled teaching activity
The formal delivery of teaching and learning for this module will comprise an average of three contact hours per week across 12 teaching weeks, supplemented by additional enrichment weeks throughout the semester. Each week will typically include a two-hour interactive session employing a range of teaching and learning strategies. These include workshops, lectures, guest speakers, case study discussions, panel debates, video analysis, as well as scenario-based activities and real-time simulations. Peer-to-peer learning is embedded within the module, as students collaborate to develop practical solutions and critically assess their impact.
Group work is a core component of the learning experience, encouraging active engagement as students share their knowledge and experience through discussion and collaboration. In addition, a one-hour seminar each week will adopt a more focused, discussion-led approach to explore current themes and emerging trends within the aviation industry. This will be further enriched through input from alumni, who will offer career insights, and guest lecturers who provide industry-specific context.
The module also makes extensive use of interactive learning spaces, supporting dialogue between students and staff, and facilitating access to a range of academic resources, including journal articles, professional websites, and external materials. Active participation in class discussions and debates is encouraged, recognising the diverse professional backgrounds and experiences that students bring to the programme.
Students are expected to prepare in advance for each session by reviewing the module schedule, which will be shared online and summarised by tutors at the end of each lecture. This preparation involves independent research and reading around the weekly themes to enable meaningful contributions to class discussions and Q&A activities.
Opportunities for reflective learning are embedded throughout the module. Students are encouraged to consider their approaches to tasks and discussions, and to reflect on informal feedback received during lectures and in relation to their submitted assessments.
Learning outcomes
Upon completing successfully this module the student will demonstrate capability to:
LO1: Assess the role of pricing strategy in the balancing of airline revenue potential by understanding market trends and air travel demand characteristics
LO2: Analyse and evaluate revenue management strategies that are appropriate to different airline business models and market environments
LO3: Assess the new ancillary revenue opportunities for airlines and the de-bundling of the traditional airline products
Bibliography
https://rl.talis.com/3/londonmet/lists/D970D7E8-3E33-CBA8-7F29-D79BB00792C5.html?lang=en-GB
Core Texts
Foundations of airline finance: methodology and practice, by Bijan Vasigh; Zane C. Rowe, 2020
Airline revenue management: current practices and future directions, by curt Cramer; Andreas Thams, 2021
The pricing and revenue management of services: a strategic approach, by Irene C. L. Ng, 2008
Revenue management and pricing analytics, by Guillermo Gallego; Huseyin Topaloglu, 2019
Additional reading
The global airline industry, by Peter Belobaba; Amedeo R. Odoni; Cynthia Barnhart, 2015
Capacity options for revenue management: theory and applications in the air cargo industry, by Rolf Hellermann, ©2006
Revenue management and air cargo, by Gina Morello, 2009
Journals:
Journal of Airline and Airport Management
Journal of Air Transport Management
Journal of Air Transportation
International Journal of Civil Aviation
International Journal of Transport Management
Examples of Industry Sources :
Air Transport World : http://atwonline.com/
IATA : International Air Transport Association : http://www.iata.org
ICAO : International Civil Aviation Organization. https://www.icao.int/about-icao
MarketLine Airlines Industry Profile
Mintel Academic: latest aviation industry analyses