Revenue management is a technique used to maximize profits by understanding basics like revenues, costs, and profits. It started in the late 1970s when the airline industry in the US was deregulated and American Airlines introduced a discounted pricing system based on flight demand. This concept expanded to hospitality and can now be applied to any product using dynamic pricing, inventory management, restrictions, and tracking customer and market data. Revenue management connects business data to concepts of demand, supply, pricing, and uses data analytics to leverage inventories at both the macro and micro levels.

1. REVENUE
MANAGEMENT
HOW IT WORKS?

2. Going
Concern
Benefit
Society
Wealth
UNDERSTANDING BASICS
Revenues
Costs
Profits
Maximise
profits

3. A HISTORY
Deregulation of Airlines
in USA in late 70’s
1
American airlines Robert
Crandall starts with a
system of discounted
pricing based on Flight
demand
2
This further expands to
Hospitality industry and
now in this age it can be
virtually applied to any
product
3

4. YIELD MANAGEMENT TO REVENUE MANAGEMENT
Based on Specific
revenue stream
Managing
inventories
Creating
Restrictions
Start Dynamic
pricing
Tracking Customer
data
Tracking Market
data
Connect to big data
and information
highway

5. A GAME
Consumer Business Data

6. CONCEPTS OF
DEMAND SUPPLY &
PRICING

7. MACRO TO MICRO
Macro data
No of flights available
No of rooms available
Competition
Seasons
Macro- Micro
Customer database within
business
Leveraging inventories
Micro
Big Data in internet
Online aggregators
Individual data

8. DATA ANALYTICS
Airlines
Uber
OLA
Ticketing companies
Airbnb
Booking.com

9. TO CONCLUDE