The Essentials of Supply Chain Management: New Business Concepts and Applications (Terry Sheppard's Library) by Hokey Min

Author:Hokey Min
Language: eng
Format: epub
Publisher: Pearson FT Press
Published: 2015-01-11T16:00:00+00:00

Revenue/Yield Management

Revenue management (also known as yield management) is an approach that aims to maximize revenue streams or profits given fixed but perishable resources (e.g., airline seats) through a thorough understanding of market dynamics. This approach has become popular among the commercial airliners ever since American Airlines successfully used it in 1985 to fill a sufficient number of seats without selling every seat at a discounted price. This approach helped American Airlines defray at least its fixed operating expenses. Once fixed operating expenses were covered, they could sell fewer remaining seats at higher prices and thus could maximize their revenues and profits. Typically, revenue management boosted incremental revenue gains by 3%–7% and profit gains by about 50%–100% when it was implemented successfully (Wikipedia, http://en.wikipedia.org/wiki/Yield_management). Revenue management is particularly relevant to the following situations (Salerno, 2010):

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.