Aerodynamic Alchemy

Follow the link for the complete code and dataset:

• https://github.com/SakshiYadav13/Aerodynamic-Alchemy

Objectives

1. Increase occupancy rate: By raising the average profit per seat and boosting occupancy, we can lessen the effects of the difficulties we are now facing.

2. Improve pricing strategy: In order to draw in and keep consumers, we must devise a price plan that takes into consideration the shifting market dynamics and consumer preferences.

3. Enhance customer experience: In order to stand out in a very competitive market and win over more repeat business, we must concentrate on giving our clients a smooth and convenient experience from booking to arrival.

The ultimate purpose of this assignment is to find ways to boost the occupancy rate on underperforming flights, which can ultimately result in higher airline profitability.

Basic Analysis

The fundamental data analysis reveals information on the number of aircraft with more than 100 seats, the evolution of the total number of tickets sold and revenue collected over time, and the average fare for each aircraft with various pricing conditions. The development of initiatives to raise occupancy rates and improve pricing for each aircraft will benefit from these findings. The aircraft having more than 100 seats are included in Table 1 together with the exact seat count.

Aircraft Code

We have used a line chart visualization to have a better grasp of the trend in ticket reservations and the money generated by those bookings. When we analyze the chart, we see that the number of tickets purchased shows a gradual rise from June 22nd to July 7th, followed by a pattern that is mostly stable from July 8th until August, with a clear peak in ticket purchases where the most tickets were purchased on a single day. It is significant to note that the company’s income from these reservations is directly correlated with the quantity of tickets purchased. As a result, we can see a similar pattern in the company’s overall revenue throughout the analyzed time frame. These findings suggest that further exploration of the factors contributing to the peak in ticket bookings may be beneficial for increasing overall revenue and optimizing operational strategies.

Figure 1

Figure 2

After completing the calculations for the typical expenses associated with various ticket conditions for each aircraft, we were able to produce a bar graph to visually compare the data. Data for three different categories of fares — business, economy, and comfort — are displayed in Figure 3. It is important to note that only the 773 is equipped with the comfort class. On the other hand, the CN1 and CR2 aircraft only provide the economy class. The costs for business class are consistently higher than those for economy class when comparing various price scenarios within each aircraft. Regardless of the fare terms, this tendency may be observed on every aircraft.

Figure 3

Analyzing occupancy rate

For airlines to be as profitable as possible, a detailed analysis of their income streams is required. Important indicators to take into account include each aircraft’s average revenue per ticket as well as the total annual income. Airlines may utilize this data to identify the aircraft types and routes that bring in the most money and adjust their operations accordingly. Additionally, by finding opportunities for pricing optimization and shifting resources to more lucrative routes, this study can help. Figure 4 below displays each aircraft’s total income, total tickets sold, and average revenue per ticket. The aircraft with the greatest overall income is SU9, and as can be seen in figure 3, this aircraft has the lowest prices for both business class and economy class. This may be the cause of the majority of passengers purchasing this flight because it is less expensive than alternatives. The aeroplane with the lowest overall income is the CN1, and one explanation for this might be that it only provides economy class at the lowest prices, or that it has less amenities or subpar conditions.

Another important factor to take into account is the average occupancy per aircraft. Using this indicator, airlines may assess how well they fill their seats and identify opportunities to increase occupancy rates. Increased occupancy rates can reduce operating costs related to empty seats while also assisting airlines in increasing revenue and profitability. Customer satisfaction, airline scheduling, and pricing policies are all variables that might affect occupancy rates. The average number of booked seats for each aircraft is depicted in figure 5 below. By dividing the number of reserved seats by the total number of seats, the occupancy rate is derived. A higher occupancy rate indicates that more passengers have made reservations for the available seats on the flight.

Figure 4

To further explore the potential advantages of improving occupancy rates, airlines can calculate how much their whole yearly turnover could increase by giving every aircraft a 10% higher occupancy rate. This study can help airlines decide whether increasing occupancy rates is a practical strategy and will have a positive financial impact. By maximizing pricing strategies and other operational factors, airlines may increase occupancy rates and revenue while providing customers with improved value and service. The picture below demonstrates how total income grew when the occupancy rate was raised by 10%. It indicates that this rise will happen gradually, therefore airlines should concentrate more on pricing tactics.

In conclusion, it is crucial for airlines looking to maximize profitability to analyze revenue statistics such as total revenue per year, average revenue per ticket, and average occupancy per aircraft. By analyzing these metrics, airlines may identify areas for improvement and alter their price and route plans. An essential factor that might improve profitability is a higher occupancy rate, which enables airlines to maximize revenue while minimizing expenditures related to empty seats. The airline has to adjust the prices for each aircraft since consumers aren’t purchasing tickets for those aircrafts due to low and high prices, respectively. They should choose a fair price based on the aircraft’s condition and amenities, and it shouldn’t be excessively low or high.

Additionally, improving occupancy rates shouldn’t come at the expense of patron safety or satisfaction. Airlines need to balance the need of making a profit with the importance of providing top-notch service and maintaining safety rules. Airlines that use a data-driven approach to revenue analysis and optimization may find long-term success in a highly competitive industry.