TABLE OF CONTENTS

ACKNOWLEDGEMENT 3

ABBREVIATION 4

LIST OF TABLES 5

LIST OF FIGURES 6

TERMINOLOGIES 7

EXECUTIVE SUMMARY 8

CHAPTER 1. INTRODUCTION 10

1.1 Rationale of research 10

1.2 Research problem 10

1.3 Research objectives 11

1.4 Research scope and limitation 11

1.5 Research methodology 11

1.6 Research Structure 13

CHAPTER 2.THEORETICAL BACKGROUND 14

2.1 Concept of Revenue Management 14

2.1.1 Definition of Revenue Management 14

2.1.2 Origin of Revenue Management 15

2.2 Revenue Management in airlines industry. 17

2.2.1 Role of Revenue Management in airlines 17

2.2.2 Contents of Revenue management in airlines 17

2.2.3 Process of Revenue Management in airlines 25

2.3 Opportunity and challenge for Vietnam Airlines industry 27

CHAPTER 3.CURRENT REVENUE MANAGEMENT AT VIETNAM AIRLINES 29

3.1 Overview of Vietnam airlines 29

3.1.1 History and Core business of Vietnam airlines 29

3.1.2 Business result 30

3.1.3 Human resources 31

3.1.4 Market share 31

3.1.5 Flight network of Vietnam airlines 32

3.1.6 Air fleets of Vietnam airlines 32

3.1.7 Philosophy and organization of Vietnam airlines Revenue Management 32

3.2 Current revenue Management in Vietnam airlines. 35

3.2.1 Data collection 35

3.2.2 Forecast demand 35

3.2.3 Seat inventory control 36

3.2.4. Overbooking application 38

3.2.5 Revenue Management process in Vietnam airlines 40

3.3 Problem’s identification at Vietnam airlines revenue management. 41

3.3.1 Unreasonable overbooking in low frequency routes 41

3.3.2 Revenue management control system 42

3.3.3 Flight report system. 42

3.3.4 Unstable schedule leads to difficult for forecasting demand and collecting data 43

3.3.5 Lack of capacity in peak season 43

3.3.6 Unreasonable compensation for denied boarding passenger 43

3.3.7 Human resources 44

CHAPTER 4. RECOMMENDATION TO IMPROVE REVENUE MANAGEMENT AT VIETNAM AIRLINES 45

4.1 Strategy and vision for development of Vietnam airlines to 2020 45

4.2 Solutions for improving Vietnam airlines Revenue management 48

4.2.1. Applying appropriate overbooking ratio. 48

4.2.2 Increasing compensation for denied boarding passenger. 49

4.2.3 Maintain the stable flight schedule. 50

4.2.4 Good capacity and demand forecast 50

4.2.5 Training human resources 51

4.2.6 Improving sufficient and efficient information database system 52

4.2.7 More flexible fare-mix policies 52

4.3 The conditions to implement solutions. 53

4.3.1 External factor 53

4.3.2 Internal factor 53

CONCLUSION 55

REFERENCE 56

APPENDIX 57