| Transportation Term Revenue per Available Seat Mile (RASM) is a financial metric used in the transportation industry to measure the revenue generated by an airline or other transportation company for each seat that is available for sale on a given flight or route. RASM is calculated by dividing a company's total revenue for a given period by the total number of seat miles flown by that company during that period. The RASM metric is particularly important in the airline industry, where it is used as a key performance indicator (KPI) to measure the effectiveness of an airline's pricing strategy. By tracking RASM over time, airlines can determine whether they are pricing tickets effectively, and adjust their pricing strategies to maximize revenue. For example, if an airline's RASM is consistently lower than its competitors, it may indicate that the airline is not pricing its flights effectively, and may need to adjust its pricing strategy to increase revenue. Conversely, if an airline's RASM is consistently higher than its competitors, it may indicate that the airline is pricing tickets too high, and may need to adjust its pricing strategy to remain competitive. Overall, RASM is a key metric for transportation companies, particularly airlines, as it provides valuable insight into the effectiveness of pricing strategies and helps inform business decisions related to revenue management. | |||
