SEMESTER PROJECT REPORT

On

“REVENUE MANAGEMENT ON SPICEJET ”

Submitted By -
Name: SANDHYA
2nd Semester M.SC IN HA
Roll No: 1921122033

Date of submission: 5th Feb 2020

Under the supervision of

MISS DEEKSHA GOVIL

Faculty-“REVENUE MANAGEMENT”( MHA05)

M.Sc. Hospitality Administration

In the partial fulfilment of the requirements for the degree of

Master of Hospitality Administration

At

National Council for Hotel Management and Catering Technology

NCHM- Institute of Hospitality, Sector 62, A-34 Noida, Uttar Pradesh

REVENUE MANAGEMENT ON SPICEJET 1

 ACKNOWLEDGEMENT
The study is conducted by assistance of several individuals. We really appreciated their
and here by thank them. We would like to give special thanks to the following people.

1. Firstly, I would like to thank Miss Deeksha Govil who had supervised the study
and guided us in doing the assignment. His presence and assistance was
remarkable and so I am grateful to him.

2. Secondly, I would like to thank all other people who provided me with the
resources to conduct my study. Their help and assistances was very valuable
and so I would like to acknowledge them as well.

Overall all the above mentioned people had a great role in my study.

Name of the student: Sandhya

Signature:

REVENUE MANAGEMENT ON SPICEJET 2

 CONTENTS

S.NO TOPIC/PARTICULARS PAGE NO

1 INTRODUCTION OF COMPANY 4-6

2 HISTORY OF COMPANY 6-10

3 IMPLEMENTATION OF REVENUE MANAGEMENT 10-13

4 FINANCIAL STATUS 13-15

5 FINDINGS & CONCLUSION 15-18

6 BIBLIOGRAPHY & WEBLIOGRAPHY 19

REVENUE MANAGEMENT ON SPICEJET 3

 SPICEJET

SpiceJet is India's 'best low cost airline'*, delivering the lowest air fares with the highest consumer
value. We operate 115 flights daily to 18 cities viz. Ahmedabad, Bangalore, Bag Dogra, Chennai,
Coimbatore, Delhi, Guwahati, Goa, Hyderabad, Jammu, Jaipur, Kochi, Kolkata, Mumbai, Pune,
Srinagar, Varanasi and Visakhapatnam.
Our on-time performance is amongst the best in India, at 82%, coupled with a Technical Dispatch
Reliability of 99.6%, making us an airline with least cancellations. SpiceJet's new generation fleet of
19 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to
ensure the highest standards in safety and operating efficiency.

1. INTRODUCTION OF COMPANY

 MISSION
“To become India’s Favorite low cost airline, providing tickets to customers at lowest possible prices
with the highest consumer value”

 VISION

“To ensure that flying is no longer confined to CEOs and business travelers, but affordable to
everyone”

 OBJECTIVES

1. The power to fly for everyone

With a dynamic fare structure, SpiceJet offers fares that are affordable and significantly lower than
most airlines. With contemporary interiors, modern graphics and vibrant colors. SpiceJet is very much
like today’s traveler - practical yet stylish. A SpiceJet will feel ‘this is the smart, international way to

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travel, I've made the smart choice. SpiceJet is committed to make sure you feel good at the end of a
flight, arriving at your destination - fresh and on time.
2. The power of performance.
From aircraft to crew and ground staff the focus is on performance. Each SpiceJet employee is
groomed to be smart, friendly, efficient and well-informed, ensuring that any interaction will make
you feel welcome and looked after. Experienced pilots, well-trained cabin crew will make every flight
a comfortable one. The philosophy is no-frills but high-performance.
3.The power of safety
SpiceJet invests heavily in safety, impeccable maintenance and a high level of expertise. Experienced
pilots, engineers and maintenance crew go through rigorous training and are hand-picked for their
technical knowledge and expertise. So you can rest assured that there is no cut-back in this key area of
modern day flying.
4. The power behind the power to fly
SpiceJet's key management personnel are all senior, seasoned professionals and have significant
international experience in both launching and managing low-cost airlines. With thousands of
cumulative man hours in the industry, the management is committed to bring to customers in India all
the benefits of the global revolution in the skies. SpiceJet aims to make travel comfortable, affordable
and refreshingly efficient experience for all.
5. Ensure safe, secure and sustainable aviation industry through use of technology and effective
monitoring
6. Enhance regional connectivity through fiscal support and infrastructure development.
7. Enhance ease of doing business through deregulation, simplified procedures and governance
8. Promote the entire aviation sector chain: cargo, MRO, general aviation, aerospace manufacturing
and skill development.
 SPICEJET MANAGEMENT HIERARCHY

Chief Executive Officer

(Mr. Ajay Singh)

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 Sr. Vice President & Co. Secretary
(Mr. Chandan sand)

Independent Director
(Mr. Manoj Kumar & Mr. Anurag
Bhargava)

Chief Financial Officer

Mr. Kiran Koteshwar

2. HISTORY OF COMPANY
 STARTUP OF COMPANY
Earlier known as Royal Airways, The origins of SpiceJet can be tracked back to March 1984 when the
company was established by Indian industrialist S. K. Modi to provide private air taxi services. On 17
February 1993, the company was named as MG Express and entered into technical partnership with
the German flag carrier Lufthansa. The airline provided passenger and cargo services under the name
of Modiluft before ceasing operations in 1996.

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In 2004, the company was acquired by Ajay Singh and the airline planned to restart operations as
SpiceJet following the low-cost model. SpiceJet leased two Boeing 737-800 aircraft in 2005 and
planned to order 10 new aircraft for expansion.[6] SpiceJet opened bookings on 18 May 2005 and the
first flight was operated between Delhi and Mumbai on 24 May 2005. The goal of the airline is to
compete with the Indian Railways air conditioned coaches and, obviously, offer a better deal to its
passengers. SpiceJet aircraft are named after spices.

 SUCCESS STORY

1.Developments at SpiceJet
During the year under review, the Company continued to scale operations and strengthen
competitiveness with multiple initiatives undertaken towards augmenting customer-centricity and
improving financial position. In line with these objectives, the focus has been on network expansion,
enhancing and making revenues more predictable, optimising costs and providing a delightful flying
experience to customers.
(a) Financial stability
SpiceJet despite challenging macroeconomic conditions and ground in go fits MAX aircraft fleet
moved quickly to recover and managed to arrest net loss at Rs 3,161 million following a Rs 4,275
million loss in the first two quarters. SpiceJet generated Rs 3,426 million cash flow from operating
activities.
(b) Fleet and network augmentation
The Company’s initiative towards network optimisation, delivering consistent and impressive ‘On-
Time Performance and providing seamless connectivity enabled it to achieve sustained monthly
passenger load factors of above 90% for 50 successive months (a feat unparalleled globally) ending
May 2019. As part of its international expansion strategy, SpiceJet signed a Memorandum of

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Understanding for interline and codeshare agreements with Emirates, one of the worlds largest
airlines during the year.
(c) Revenue enhancement and new ancillary streams Passenger revenue
SpiceJet undertakes sustained efforts towards detailed and close flight monitoring with proper
coordination between its airport network, revenue and sales teams. This enables it to take timely
action to maximise revenue and increase the load factors. Further, the Company continues to
enhance its routes, aircraft fleet and daily flights to maximise revenues.
Ancillary revenue
The new-age, graded loyalty programme Spice Club offers a plethora of benefits to its customers.
The programme is aimed at delighting the customers and building a vast loyal customer base
focussed on increasing direct flight bookings and boost ancillary sales. It offers a fascinating range
of entertainment content onboard in a bid to improve the flying experience of customers. In additi on
to this, the launch of niche products and services such as You First (priority check-in, priority
baggage), combo products like seat + meal, Visa, Gift Cards, My Flexi Plan have received splendid
response from its customers. SpiceVacations.com is a comprehensive travel solutions platform,
offering customised travel packages for both business and leisure travellers at competitive prices.
(d) Cost reduction measures
Cost reduction and maintaining an optimal cost structure is paramount and an important focus area for
the Company in a price sensitive market. The Company aggressively focussed towards automation,
manpower optimisation, strengthening efficiencies and efficient asset utilisation in its endeavour to
reduce costs during the year. Additionally, the Company undertakes various fuel saving methods like
fuel hedging and use of lightweight seats. It is also undertaking efficiency improvement initiatives in
key functions like cargo handling, lower aircraft acquisition and maintenance costs and reduction of
training costs.
(e) Brand consolidation
On the back of one of the biggest Boeing orders placed both in the country as well as in the history
of Boeing, it was pertinent that the airline keeps aligning itself with flyers. This resulted in SpiceJet
constantly attracting new generation of flyers from the existing markets as well as exploring new
markets of growth. Simultaneously, the brand focussed on constantly introducing novel offerings
and re-inventing the existing ones in order to turn new recruits into patrons.
5. Opportunities, Risks, Concerns and Threats
The Indian aviation industry is expected to continue growing at an impressive pace on the back of
strong economic growth prospects, expanding middle-class and working population, spurt in
income levels and low-cost aviation. These factors will lead to a sustainable growth; growth will
REVENUE MANAGEMENT ON SPICEJET 8
further be propelled by increasing leisure and business travel, expansion of capacity and airport
infrastructure and favourable Government policies. The industry has witnessed a healthy growth in
SpiceJet with its low-cost strategy, fleet and network expansion programme and proven customer-
centricity can deliver profitable growth. Fuel costs can be mitigated through adequate hedging and
direct import which will be taken at appropriate time.

 Current Business Profile

SpiceJet Ltd is an India-based company engaged in transportation of passengers by air. The Company
is engaged in the business of scheduled air transport services. Its geographical segments include India
and others. It provides air transport services for the carriage of passengers and cargo. The Company is
a low cost carrier (LCC) operating under the brand name of Spice Jet in India. The Company operates
a fleet of approximately 40 aircraft, including approximately seven aircraft taken on wet lease across
various routes in India and abroad. The Company's spice add-on includes spice cash/spice club, Spice
Max, hot meals, Spice Cash Top-up, priority check-in, Spice talk, track Spice talk request, bag out
first, carry more onboard, fly for sure, Spice lounge, my flexi plan, reliance travel insurance, Spice
assurance, Spice flex, friends and family, senior citizen discount, student discount, Indian armed forces
personnel and red hot offers.

 AWARDS & RECOGNITION/ACHIEVEMENTS

 ASSOCHAM 11th International Conference-cum-Awards (Civil Aviation & Cargo)Best

Domestic Airline
 BML Munjal Award 2018 Business Excellence through Learning and Development to CMD
Mr. Ajay Singh
 Times Travel Awards 2018 Editor’s Choice Award for Best Domestic Low-Cost Airline
 ‘Best Domestic Airline Award’ at the Wings India Awards 2018
 ‘Indian Entrepreneur of the Year Award 2017’ to CMD Mr. Ajay Singh for Business
Transformation by Ernst & Young

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  The CAPA Chairman’s Order of Merit for Excellence Award’ for the remarkable turnaround
of SpiceJet.
 Best Historic Turnaround’ award 2016 at the 9th ASSOCHAM International Conference &
Awards
 ‘Best Domestic Airline for South India’ award 2016 by DDP TravTalk Voted as ‘Best
Transportation’ brand and
 ‘Best Airline’ brand 2016 in India by Brand Trust Report Best ‘Individual: Consultancy
Professional’ award 2016 to SpiceJet Public Relations (PR) at Fulcrum
 ‘Rising like a Phoenix’ PR campaign rated amongst the 40 best PR campaigns in the world in
2016 at the Global SABRE Awards
 ‘Best Employee Engagement’ 2016 at the 4th DMA-Thomas Associates National Award
 ‘Best Check-in Initiative’ award 2016 by Future Travel Experience global awards for
introduction of Bluetooth Low Energy (BLE) beacons and Near Field Communication (NFC)
technology
 SpiceJet CMD Mr. Ajay Singh received the ‘DDP Game Changer’ award 2016 at the North
India Travel Award
 SpiceJet CMD Mr. Ajay Singh received the ‘World Travel Leaders’ award 2016 at the World
Travel Market Awards in London
 2008 Frost & Sullivan Indian Commercial Aviation Emerging Company of the Year Award
(Nov 2008) London Smart Travel Asia’s Top 10 Best Budget Airlines in Asia (Sept 2008)
Hong Kong
 Outlook Taveller’s Best Low Cost Airline (Feb 2008) India
 TAFI – Abacus’s * Best Low Cost Airline (Sept 2007) Malaysia

3. IMPLEMENTATION OF REVENUE MANAGEMENT

 REVENUE MANAGEMENT STRATEGIES
1. Low Cost Operations
 Monitoring and improving fuel consumption
 Readiness for import of fuel or hedging
 Lower aircraft acquisition & associate maintenance costs
 Bring down other costs by insourcing or securing long terms contracts

2. Increase Ancillary Revenue

 Maximize passenger related ancillaries through a range of value-based products

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  Integrate travel related services like hotels, vacations, car hire etc.
 Develop cargo and merchandise business units
3. Consolidate Operations & Strengthen Financials
 Maintain fleet reliability
 Develop a continuous line of trained professionals through its academy
 Implement and maintain high level of automation
 Highly skilled and motivated work force
 Build its financials to avoid shocks
4. Revenue Maximization / Optimization
 Monitoring and improving fuel consumption
 Readiness for import of fuel or hedging
 Lower aircraft acquisition & associate maintenance costs
 Bring down other costs by insourcing or securing long terms contracts
 Maximize asset utilization
 Expand international
 Focus on key sectors
 Develop regional markets with Q400
 Dynamic fleeting capability to address seasonality variations
 Sizing capacity to demand

 PERSONNEL MANAGEMENT

The employee’s management at SpiceJet airlines is as follows:

1. Internal Control The Company’s internal control systems are commensurate with the
organisations pace of growth and increasing complexity of operations and have been designed to
provide reasonable assurance regarding the following:
 Effectiveness and efficiency of operations
 Adequacy of safeguards for assets
Prevention and detection of frauds and errors Accuracy and completeness of the accounting records
Timely preparation of reliable financial information
An independent internal audit is carried out to ensure the adequacy of the internal control system
and adherence to policies and practices. The scope of internal audit activity is guided by the internal
annual audit plan, which is approved by the Audit Committee of the Board. The Audit Committee

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reviews reports submitted by the independent internal auditor and monitors follow-up and
corrective action taken.
2. Human Resources
SpiceJet offers a work environment that promotes creativity, teamwork, meritocracy, ambition and
learning. SpiceJet believes in fostering equal employment opportunities, where individuals are
selected and treated on the basis of their job-relevant merits and abilities and are given equal
opportunities within the organisation. SpiceJet encourages learning on-the-job and facilitates
various training programmes for its employees. SpiceJet focused on various strategic learning
programmes, employee engagement and health management initiatives to aid overall professional
and personal development of its employees. The special corporate discounts on fees was also
extended to employees family members. The feeling of belongingness and ownership comes to the
employees of SpiceJet. They work as a team which SpiceJet things that employees are there biggest
asset.
3. Information Technology
New technologies, processes and innovation have been introduced, paving the way for more
competent, efficient and profitable conduct of business. With the growing fleet, SpiceJet will be
launching automated rostering solutions to improve the crew planning business processes. An
innovative and digitally-enhanced Crew and Fleet Management Solution will also be launched,
which will increase crew productivity while enabling them towards better work-life balance.
6. The CSR part of the company has a programmed named “iServices” for the employees where they
can volunteer their time and effort for the under-privilege. They can volunteer time, skills or expertise
up to three days in a year during work hours.
7. Future Outlook SpiceJet is optimistic about a strong performance in the coming year on the back
of massive fleet expansion, favourable operating environment.
8. SpiceJet sees immense potential in the air cargo business and aims to connect all the seven North
Eastern states with Guwahati through the freighter route going forward. Its aim is to scale up Spice
Express existing capacity and transform it into a full-scale freighter cargo service. Overall, the
Company’s management is undertaking various steps to further maximise revenue and profit,
optimise costs, improve productivity, enhance brand prominence and achieve highest levels of
customer satisfaction in its endeavour to build and sustain a world-class airline.

 BENIFETS /ADVNTAGES OF REVENUE MANAGEMENT

The benefits of revenue management are as follows:

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1. Customer Expectations: Revenue management provides companies with a better understanding of
what their customers expect in the company’s product. The research involved with revenue
management gives companies insight into the specific wants and needs of their customers, and
enables the company to shape the product and its presentation more effectively.
2. Competitive Pricing: Revenue management enables the company to create a competitive pricing
strategy that will draw in customers and give the company an edge over its competitors. In fact, revenue
management is so pervasive within certain industries that companies failing to implement revenue
management strategies are unable to continue competing effectively within the marketplace.
3. Market Segments: Revenue management seeks to show the company the full extent of its market
segment and to introduce the company to new market segments that are available. Companies that
usually focus on
certain market segment might need to expand their focus to continue growing in the industry.
4. Company Division: Revenue management creates a strong awareness between the activities of
different company divisions, and particularly the activities of those working on sales and marketing,
and those on the front line of service.
5.Improved seasonal pricing
6.Identification of new market segments
7.Enhance coordination between Front Office and Sales
8.Development of business plans
9.Initiate constant touch with guest
10.Improved forecasting to know number of rooms vacant for a day.

4. FINANCIAL STATUS
 ANNUAL TURNOVERS

31-Mar-
Particular 31-Mar-19 18 31-Mar-17 31-Mar-16 31-Mar-15
Revenue 91,214.75 77,601.34 61,913.62 50,880.72 52,015.25
Total Revenue 91,214.75 77,601.34 61,913.62 50,880.72 52,015.25
Cost of Revenue, Total 73,087.68 55,482.06 44,325.43 35,941.02 48,057.59
Gross Profit 18,127.07 22,119.28 17,588.19 14,939.70 3,957.66
Selling/General/Admin.
17,275.28 14,291.85 12,054.59 9,265.54 10,386.63
Expenses, Total
Depreciation/Amortization 2,563.54 2,313.18 1,986.14 1,798.07 1,266.25
Unusual Expense (Income) 644.17 0.00 (302.85) (636.94) (497.69)

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 31-Mar-
Particular 31-Mar-19 18 31-Mar-17 31-Mar-16 31-Mar-15
Other Operating
24.04 18.39 14.65 9.01 18.62
Expenses, Total
Total Operating Expense 93,594.71 72,105.48 58,077.96 46,376.70 59,231.40
Operating Income (2,379.96) 5,495.86 3,835.66 4,504.02 (7,216.15)
Interest Inc.(Exp.),Net-
(981.01) (361.71) (150.72) (1,105.79) (1,096.32)
Non-Op., Total
Gain (Loss) on Sale of
(20.02ZS) (52.16) (9.06) (62.09) (18.81)
Assets
Other, Net 357.14 490.07 596.32 1,161.74 1,460.74

Net Income Before Taxes (3,023.85) 5,572.06 4,272.20 4,497.88 (6,870.54)

Provision for Income
0.26 0.00 0.00 0.00 0.00
Taxes
Net Income After Taxes (3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Net Income Before Extra.
(3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Items
Net Income (3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Income Available to Com
(3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Excl ExtraOrd
Income Available to Com
(3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Incl ExtraOrd
Diluted Net Income (3,024.11) 5,572.06 4,272.20 4,497.88 (6,870.54)
Diluted Weighted Average
599.49 599.61 599.45 788.67 559.54
Shares
Diluted EPS Excluding
(5.04) 9.29 7.13 5.70 (12.28)
ExtraOrd Items
Diluted Normalized EPS (4.32) 9.38 6.64 4.97 (13.13)
DPS - Common Stock
0.00 -- -- -- --
Primary Issue

 DATABASE & STATISTICS

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(A) OPERATIONAL HIGHLIGHTS

(B) FINANCIAL HIGHLIGHTS

 APPLICATION OF FORMULAS OF MEASURING YIELD (PROVIDED BY GUIDE)

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5. FINDINGS & CONCLUSION
 Effect of revenue management on company business
1.Revenue Increase
Revenue management leads to innovation -- in both the creation of new products and services and their
pricing. This innovation leads to increases in revenue from sources companies may not have previously
explored. According to an article in Hospitality Upgrade, revenue management typically accounts for
three to six percent of a hotel’s revenue, although some hotels experience a much higher impact.
2.Focus
Revenue management, at its best, is an operating methodology that focuses each group or department
within a company on the actions they need to take to increase profitability. A company that can embed
this perspective in its culture will likely reap the benefits, including a greater impact on revenues and
margins. Computer information systems can help companies implement revenue management
processes and procedures but these tools assist, not drive.
3.Metrics
In order to reap the full benefits of revenue management, a company must measure a number of
variables. These metrics depend on the industry, but in any case should indicate how well a company
uses revenue management to impact the bottom line. A culture of measuring, comparing and making
adjustments spills over to other aspects of the business, which makes the overall company more
efficient, driving down costs and increasing profitability.

 SUGGESTIONS & ADVICES FOR BETTER EXECUTION

1. Spice Jet should try to increased internal funds and to reduce debts.
2. It should increase its dependence on long term source of finance, by the dependence on long term
source of finance its shareholders can enjoy the benefits of trading on equity.
3. It should maintain a current ratio of at least 1 to ensure that the value of current assets cover at least
the amount of short term obligations.
4. It should give good online facilities to customers such as booking and cancellation of tickets. It
should give quick response to customers.
5. Company should increase its sales and try to decrease operating expenses viz. administration
expenses, selling and distribution expenses etc.
6. The company should invest capital to increase the earnings.

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7. It should increase operating revenue and should decrease the operating expenses by reducing the
administration and general expenses and selling and distribution expenses to achieve the operating
profit.
8. It should increase the market share and should provide services to many destinations.

 SWOT ANALYSIS
Strengths in the SWOT analysis of SpiceJet
 The power to fly – The management personnel of SpiceJet are all seasoned professionals and
seniors who have a good amount of international experience in both managing and launching
low-cost airlines. By having many man-hours in the industry, the management is committed to
bringing to customers in India, the benefits of the global revolution in the skies. The airline
provides a comfortable journey that is affordable and refreshing.
 Safety features – The airline invests a huge amount in safety and maintenance of aircraft by a
high level of expertise people. The pilots, maintenance crew, and its engineers are given
rigorous training and are hand-picked for their experience and knowledge in the domain. Hence
the passengers can rest while traveling.
 Dynamic fare structure – Having a dynamic fare structure, the airline provides fares that are
affordable and comparatively lower those other airlines. Having contemporary interiors,
vibrant colors, and modern graphics, SpiceJet most fits the current traveler.
 Good reachability – SpiceJet has good reachability to about 55 destinations. This makes the
traveler fly to these destinations easily.
 Good market presence – SpiceJet has a good presence in the market as it has maintained a
good advertising strategy. Due to this, it has a good brand value.
 An Interactive website – SpiceJet provides an interactive website that allows booking through
their website. By this, the customers can book the tickets; perform check-in through online
itself.
 Tourism partnership – SpiceJet has partnered with Trip factory for selling holiday packages
by using the platform. This will increase their business revenue.
 The Rs. 99 fare – It started off with Rs. 99 far for the first 99 days to attract the passengers.
This has got many passengers to the airline for the first few days to increase their visibility.
Weaknesses in the SWOT analysis of SpiceJet
 High competition – SpiceJet faces strong competition from other competitors and due to
which it has low market share.

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  Limited destinations – The number of destinations served by the airline is low as compared
to other airline services. This will provide a restriction to passengers who travel to other
destinations not listed in the SpiceJet destinations.
 Wrong decisions – During the year 2014, SpiceJet announced 50% discounts as the airline
was facing a lot of competition. Due to this it has to cancel many domestic flights across the
country and caused a lot of chaos to the passengers.
 Frequent offers – SpiceJet providing frequent offers to the passengers is not a good idea to
gain passengers. This will impact their revenue generation thereby facing a lot of loss in the
business.
 High airport and fuel cost – All the airlines including SpiceJet face the heat of having a high-
cost environment that is widespread in the aviation industry. This will amount to major of their
income thereby leading to a low revenue generation.
 Dip in their profit – During the recent months, the airline has posted a major loss of Rs. 38
crore as compared to the profit of about Rs. 175.2 crore in the previous year.
Opportunities in the SWOT analysis of SpiceJet
 Low airfare, hence more passengers – Since SpiceJet is popular for their low-cost airfare,
much middle class who wish to travel through airline can make use of SpiceJet for their travel.
 More routes and destinations – SpiceJet can gain more opportunities to grow their business
by introducing more routes and destinations. The airline can increase their destinations to
popular places that will fetch them more passengers.
 Having international partnership – Having partnerships with the international market can
increase their visibility and their brand image.
 Growing interest in tourism – Since SpiceJet has partnered with tourism sector; there is a
huge opportunity for it. The tourism sector is growing in India and this helps the business to
grow.
 Tax holiday on leasing of aircraft – India’s Union Budget Government of India has
announced five year tax holiday on the event of leasing an aircraft.
Threats in the SWOT analysis of SpiceJet
 Strong competition – SpiceJet faces a lot of competition from its competitors which is a
serious threat to the airline services.
 Fuel increase – The rising fuel cost can be a threat to their economy. This will decrease the
margins for the airline.

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 Change of government policies – Frequent change in government policies and having
pressure from the international market will affect the brand operations and image of the
company.

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  WEBLIOGRAPHY

 https://www.indiainfoline.com/company/spicejet-ltd/management-discussions/3367
 https://www.altexsoft.com/blog/business/hotel-revenue-management-solutions-best-practices-
revenue-managers-role
 https://en.wikipedia.org/wiki/SpiceJet
 https://smallbusiness.chron.com/importance-revenue-management-71942.html
 https://www.spicejet.com/InvestorsFinancialInformation.aspx
 https://www.marketing91.com/swot-analysis-of-spicejet/

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