Strategic Pricing through Revenue Management
نویسنده
چکیده
Excerpt] Revenue management (RM) has been practiced in the airline (Smith, Leimkuhler,& Darrow, 1992),hotel (Hanks, Noland, & Cross, 1992),and car rental industries (Carroll & Grimes, 1995; Geraghty & Johnson, 1997) for over 15 years, and has more recently attracted attention in other industries, including broadcasting, golf (Kimes, 2000), health care (Born et al., 2004), and restaurants (Kimes, Chase, Choi, Ngonzi, & Lee, 1998). RM is applicable to any business that has a relatively fixed capacity of perishable inventory (i.e., seats, rooms, tee times), that inventories demand (either through reservations or wait lists), that has a high fixed cost and low variable costs, and that has varying customer price sensitivity. Industries using RM typically report revenue increases of 2% to 5% (Hanks et al., 1992; Smith et al, 1992).
منابع مشابه
Study on Revenue Management Considering Strategic Customer Behavior
This article reviews the literatures of revenue management and introduces the status of traditional research about perishable products in this field. We analyze revenue management considering strategic customer behavior and the related researches about dynamic pricing, finally we discuss the existing problems and suggest several future research directions.
متن کاملAN INTEGRATED APPROACH TOWARDS REVENUE MANAGEMENT Forthcoming in the Journal of Revenue & Pricing Management
This paper argues that advanced demand exhibit three characteristics – that of being probabilistic, stochastic and deterministic. Deterministic demand results in revenue management practices being cross-functional. The paper proposes a new revenue management system that integrates four decision sets of the firm: the value set, the segmentation set, the sensitivity set and the forecasting set. A...
متن کاملAn Empirical Research on Hotel Revenue Management Financial Performance Influencing Factors
In recent years, revenue management has become an important competitive strategy in the hotel, and the level of hotel performance directly reflects the effectiveness of the application of revenue management. But so far, academic research about hotel revenue management performance influencing mechanism and evaluation is still extremely limited. Based on fully retrieving the relevant literature, ...
متن کاملRevenue Management for Products with Unknown Quality and Observable Price and Sales History
This paper studies pricing strategies of a monopolist when customers are strategic and infer the product quality from historical sales and price paths. This behavior may be expected when selling a new, innovative product whose quality is unknown and customers have some, but, imperfect information about the product quality. The monopolist can sell a finite amount of inventory during a finite hor...
متن کاملRevenue Management: Research Overview and Prospects
In the forty years since the first publication on overbooking control, passenger reservations systems have evolved from low level inventory control processes to major strategic information systems. Today, airlines and other transportation companies view revenue management systems and related information technologies as critical determinants of future success. Indeed, expectations of revenue gai...
متن کامل