The Shuttle by United

Abstract

United Airlines designed the Shuttle by United to compete in the short-haul air service market. Up to mid-1994, United had been steadily losing market share in the short-haul markets to new carriers with lower costs. It seized an opportunity created by an employee buyout through an employee stock ownership plan (ESOP) to reestablish itself as a competitor in those markets. Using a combination of market research, employee teams, and process analysis, United reduced its costs by 30 percent, increased plane utilization, and cut turnaround time in half from its existing air service. Its efforts have resulted in higher customer satisfaction, improved market share, reduced costs, and increased profitability.

Spa Revenue Management

“…During busy periods, restaurants try to clear and reset tables as quickly as possible so that the next party can be seated promptly. Many low-cost air carriers boast twentyminute aircraft turnarounds and have thus been able to increase plane use and increase revenue (Kimes and Young 1997). If the amount of time between treatments can be reduced from ten minutes to five minutes, say, more treatments can be scheduled and revenue potential will increase.…”

B2B sales force productivity: applications of revenue management strategies to sales management

“…A similar strategy has been utilized by airlines in their efforts to decrease changeover time. For example, Southwest Airlines and the Shuttle by United both boast 20-minute aircraft turnarounds and have thereby been able to increase plane use [5]. Likewise, by determining the appropriate contact length for each customer segment and scheduling appointments with companies located in immediate proximity, sales managers may find that sales appointments can be scheduled closer together, increasing the number of appointments each working day.…”

“…Increasingly, revenue management is being adopted across a broad spectrum of industries. For example, not only is revenue management routinely used in airlines and hotels, but it is currently being adopted by restaurants, golf courses, and utility companies, and is being given serious consideration by at least one world-renowned hospital based in the United States [2][3][4][5][6]. The goal of revenue management is to ensure the firm generates the highest possible profits given current customer demand and price sensitivities.…”