Instruction:

Part 2 (Week 7)

3. Use the forecasting and overbooking calculation to set your pricing and seat allocation for Flight #1 from -24 weeks to -5 weeks onthe Flight #1 table below (5 points) and provide your rationale in the Textbox below the table.

(Tip: The numbers you put in the Seat Allocation rows should be the booking limits. That means the numbers in the "Full" row are the total number of seats you want to sell in this flight (including overbooking and all three classes. The numbers in the "Discount" row are the maximum number of seats that you allow the Discount and Deep Discount customers to buy. In each week, the Deep Discount demand the the Discount demand will always fill up the allocated capacity so make sure you preserve enough seats for Full fare customers who show up later. This means you will want to be conservative on the booking limits for the Disc and Deep Disc rows at the early stage of booking.

Type your pricing and capacity allocation rationale (-24 to -5 weeks) below:

Tips: For seat allocation, you need to enter the booking limit for the full, discount, and deep discount fares. The booking limit should include the overbooking. The number of seats assigned to the full fare should be the total number of seats you are willing to sell (including overbooking) because you want to make all capacity available to full fare passengers. In other words, that is the number of seats you are willing to sell to full, discount, and deep discount passengers. Similarly, the booking limit assigned to the discount fare is the number of seats you are willing to sell to discount and deep discount fare passengers. Whatever you assign to the discount fare will take away the seats from full rate passengers. You will need to forecast the demand of full fare passengers and allocate only the spare capacity to the other two lower fares.

Flight #1: Use Excel

24 20 16 12 8 7 6 5 4 3 2 1

Price Full Disc.

Disc.

D. Disc.

Seat Full

Allocation Disc

D. Disc.

1. Use the attached data to chart the booking curve band of the Full Fare and Discount Fare demand. You need to show the highest, lowest, and median demand quantity for each time point on the booking curve. Place your charts next to the demand data. Click here (https://tinyurl.com/y2frfh54) for the video demo on making the booking curve.