1.  The tourism industry would cease to function without an efficient and effective transportation system  Transportaion is often “intermodal” with travelers relying on several different modes of transportation to reach their final destination. Transportation

2.  Sailing  Steam-powered ships. in the early 19th century and began regular service across the Atlantic.  Steam engine technology was also used to developp passenger rail service. Historical Developments

3.  Commercial jet aircraft were created in the mid 1900s. Plane replaced ships  With innovation in road construction and mass production of the automobile in the early 1900s, the automobile became affordable to a large segment of the population. Cars replaced train. Historical Developments

4.  Cruise ships differs from other type of transportation: the primary purpose is not only to provide transportation, but serve as a destination. Cruise Ships Travel Today

5.  In Europe, important mode of intercity transportation. → cheaper than air travel  Developments of High Speed trains  Developments of pass holders  Developments of speciality train Rail Service Today

6.  Eurostar or “chunnels”  Orient Express  The Blue Train  Copper Canyon  The Palace Wheels  Indian Pacific Speciality Trains

7. Mode of Transportation for U.S. Trips Auto 75% Airplane16% Rental car3% Other6%

8.  Cars replaced train  The development of the airplane reduced the passenger ocean liner  Plane replaced liner  In 1999: 1,5 billion air trips were recorded  In 2010: 2,3 billion air trips are expected Airplane: Historical Developments

9.  Every Airline has an Identification code  Every city has an Airport code  Code to identify Class of Service  Code to identify Intermediate Stops  Code to identify Type of Trips Decoding the Language of the Airline World

10.  A small plane with a seating capacity of 37 seats  On a 150-mile flight between A and B Cities  We know that we can sell 37 seats at: $39.00, which is a low price for in advance purchase ticket 37x $39.00 =$1443.00  We also know that we can sell 15 seats at: $98.00, which is a full fare ticket for businessmen 15x$98.00=$1470.00  Which one would you choose? Why? Yield Management: An Example

11.  Plane has 37 seats  37x $39.00 =$1443.00  15x$98.00=$1470.00  Which one would you choose? Why? Yield Management: An Example AB 150 miles

12.  To maximize the revenue, the company sells:  8 seats at $39.00, which is a low price for more than 30 days in advance purchase ticket  12 seats at $59.00, which is a low price for more than 14 days in advance purchase ticket  17 seats at $98.00 full-fare ticket that can be sold up to the time of departure. What is the total?  (8x $39.00) + (12x $59.00) + (17x $98.00) = $2686.00  What is missing? Yield Management: An Example

13.  To maximize the revenue, the company sells:  8 seats at $39.00  12 seats at $59.00  17 seats at $98.00  (8x $39.00) + (12x $59.00) + (17x $98.00) = $2686.00  What is missing? Yield Management: An Example AB 150 miles

14.  A small plane with a seating capacity of 37 seats will go to a 150-mile destination. 30 tickets were sold  Another plane with a seating capacity of 45 seats will go to a 100-mile destination. 37 tickets were sold  Which plane has a better load factor ?  Divide: Revenue Passenger Miles (RPMs) by  Available Seat Miles (ASMs)  (150x30) / (150x37) =  (100x37) / (100x45) = Other Key Statistics: Load Factor

15.  A small plane with a seating capacity of 37 seats will go to a 150-mile destination. 30 tickets were sold  Another plane with a seating capacity of 45 seats will go to a 100-mile destination. 37 tickets were sold  Which plane has a better load factor ?  Divide: Revenue Passenger Miles (RPMs) by  Available Seat Miles (ASMs)  (150x30) / (150x37) = 4500 / 5550 = 0,81  (100x37) / (100x45) = 3700 / 4500 = 0,82 Other Key Statistics: Load Factor

16.  A Hotel in Antalya has 1000 rooms applying the all inclusive system.  The hotel knows they can sell to foreigners rooms at $120.00 with a occupency rate of 65%  The hotel also knows that we can sell to Turkish travelers, rooms at $80.00 with a capacity of 100%  Which one would you choose? Discuss Yield Management: Hotel