Introduction: How to do it?

Ian Yeoman and Una McMahon-Beattie

A chapter in Revenue Management, 2011, pp 1-5 from Palgrave Macmillan

Abstract: Abstract Any business must know its customers, specifically you need to know how much your customers will pay for a product and device appropriate strategies. This is not about offering the lowest price in order to fill capacity. It’s about knowing your market segment, how much they will pay when they will purchase and what distribution channels they will use. Pricing is about deciding your market position, that is, premium or low cost, whereas Revenue Management is the strategic and tactical decisions firms take in order to optimize revenues and profits. Since the publication of Peter Belobaba’s PhD thesis work. Air Travel Demand and Airline Seat Inventory Management (1987), which was a defining moment in the management of complexity, capacity allocation and real-time inventory solutions, Revenue Management has come of age, fuelled by superior management science models and greater accessibility to technology in addition to the acceptance of the guiding principle of Revenue Management in enhancing the bottom line. At the same time, society has shifted from manufacturing to a service industries economy where the unit of inventory is time, in which the consumer year on year is more price sensitive. Today, in the age of the Internet, the management time slots as inventory along with instant purchase is the foundation of many consumer products and services. Hence, Revenue Management has spawned across many industries and applications.

Keywords: Distribution Channel; Revenue Management; Online Advertising; Capacity Allocation; Online Travel Agency (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-29477-6_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230294776

DOI: 10.1057/9780230294776_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().