What is Revenue Management?
Chances are that you are already exercising Revenue Management in an informal way. You are prepared to offer discounts on departures you consider will not be full to capacity. However, you hold out for the standard fares on those that will. In essence, this is Revenue Management.
Through the gathering and analysis of historic booking data coupled with well-defined techniques, you can formalize this activity into a management discipline that will consistently return substantial, predictable, increased revenues and profits from the sale of your inventory. By disciplining inventory and pricing tactics, you initiate a systematic approach to maximizing revenues and profitability.
Why You Should Consider Revenue Management Now ?
Every day that goes by with a departure that leaves with empty space when it was booked full, every space that is sold for less than it could have been, and every customer turned away because of no available space regardless of how much they were prepared to pay, is a lost opportunity for additional revenue and net profitability! Worse still, it is lost forever.
Nevertheless, don’t think of Revenue Management as a magical piece of software. Instead, think of it as a logical and focused way of doing business that concentrates on maximizing the potential revenues from every individual departure.Your cost is lost revenues! The start-up costs are minimal and you can control the level of investment over time based on your budget, your needs, and the benefits you achieve. You
don’t have to do everything at once; in fact, that would be impossible. Therefore, the risks you may perceive in changing your business operations can be managed in direct proportion to your increasing acceptance that Revenue Management is for you.