Revenue Management

Revenue Management 1 (1997) Revenue Management: Hard-Core Tactics for Market Domination

Revenue Management - Overview 1 Revenue management redefined

Revenue Management - History 1 (1999) Revenue management: research overview and prospects

Revenue Management - History 1 By the mid-1990s, Marriott’s successful execution of Revenue Management was adding between $150 million and $200 million in annual revenue.

Revenue Management - History 1 A natural extension of hotel Revenue Management was to rental car firms, which experienced similar issues of discount availability and duration control. In 1994, Revenue Management saved National Car Rental from bankruptcy. Their revival from near collapse to making profits served as an indicator of Revenue Management’s potential.Geraghty, M. and Johnson, E. (1997) Revenue management saves national car rental. Interfaces 27(1): 107–127.

Revenue Management - History 1 In the first year of this Revenue Management system, UPS reported increased profits of over $100 million.Agrawal, V

Revenue Management - History 1 Marriott’s original application of Revenue Management was limited to individual bookings, not groups or other negotiated deals

Revenue Management - History 1 (2005) Revenue Management

Revenue Management - History 1 By the end of the decade, Ford estimated that roughly $3 billion in additional profits came from Revenue Management initiatives.Leibs, S

Revenue Management - History 1 The public success of Pricing and Revenue Management at Ford solidified the ability of the discipline to address the revenue generation issues of virtually any company

Revenue Management - History 1 IHG and Revenue Analytics, a Pricing and Revenue Management consulting firm, were selected as finalists for the Franz Edelman Award for Achievement in Operations Research and the Management Sciences for their joint effort in implementing Price Optimization at IHG.Eister, C., Higbie, J.,Koushik, D

Revenue Management - The Revenue Management Society (RMS) 1 The Society traces its roots back to 2002 when Steve Marchant gathered a group of clients and colleagues to discuss Revenue Management issues of common interest

Revenue Management - The Revenue Management Levers 1 Whereas yield management involves specific actions to generate yield through perishable inventory management, Revenue Management encompasses a wide range of opportunities to increase revenue. A company can utilize these different categories like a series of levers in the sense that all are usually available, but only one or two may drive revenue in a given situation. The primary levers are:

Revenue Management - Pricing 1 This category of Revenue Management involves redefining pricing strategy and developing disciplined pricing tactics

Revenue Management - Inventory 1 When focused on controlling inventory, Revenue Management is mainly concerned with how best to price or allocate capacity

Revenue Management - Marketing 1 Revenue Management optimization proves useful in balancing promotion roll- off variables in order to maximize revenue while minimizing Product churning|churn.

Revenue Management - Channels 1 When faced with multiple channels to retailers and distributors, Revenue Management techniques can calculate appropriate levels of discounts for companies to offer distributors through opaque channels to push more products without losing integrity with respect to public perception of quality.

Revenue Management - Data Collection 1 This information is crucial to starting the Revenue Management process.

Revenue Management - Segmentation 1 Revenue Management strives to determine the value of a product to a very narrow micro-market at a specific moment in time and then chart customer behavior at the margin to determine the maximum obtainable revenue from those micro- markets

Revenue Management - Forecasting 1 By combining these forecasts with calculated price sensitivities and price ratios, a Revenue Management System can then quantify these benefits and develop price optimization strategies to maximize revenue.

Revenue Management - Optimization 1 Often considered the pinnacle of the Revenue Management process, optimization is about evaluating multiple options on how to sell your product and to whom to sell your product

Revenue Management - Dynamic Re-evaluation 1 Revenue Management requires that a firm must continually re-evaluate their prices, products, and processes in order to maximize revenue. In a dynamic market, an effective Revenue Management System constantly re-evaluates the variables involved in order to move dynamically with the market. As micro- markets evolve, so must the strategy and tactics of Revenue Management adjust.

Revenue Management - Revenue Management in an Organization 1 Other firms dedicate a section of Finance to handle Revenue Management responsibilities because of the tremendous bottom line implications

Revenue Management - Revenue Management in an Organization 1 A company that has achieved excellence in Supply Chain Management and Revenue Management individually may have many opportunities to increase profitability by linking their respective operational focus and customer-facing focus together.

Revenue Management - Revenue Management in an Organization 1 Business Intelligence platforms have also become increasingly integrated with the Revenue Management process

Revenue Management - Developing Industries 1 Many industries are beginning to embrace Revenue Management and apply its principles to their business processes:

Revenue Management - Developing Industries 1 Revenue Management, Vol

Revenue Management - Developing Industries 1 Presentation to 5th Annual Revenue Management Price Optimization Conference; 6 October, Atlanta, GA.Shikander

Revenue Management - Developing Industries 1 Mcmahon-Beattie (Eds), Revenue Management and Pricing: Case Studies and Applications (pp.137– 142)

Revenue Management - Developing Industries 1 (2013), Hotel Revenue Management: Principles and Practices, Pearson

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