What are examples of revenue management?
The most common example of how Revenue Management is executed is in the businesses of Hotel Management and the Airline Industry. The primary source of revenue for hotels is found in their room rates. The revenue generated from the bookings is a simple multiplication of price and volume booked.
What do revenue management do?
A revenue manager is tasked with keeping up with market trends, analysing data and using the available information to anticipate demand and then adjust strategies accordingly. Ultimately, the core objective for any revenue manager is to maximise the amount of money generated by selling products or services.
What are the three main concepts of revenue management?
The discipline of revenue management combines data mining and operations research with strategy, understanding of customer behavior, and partnering with the sales force.