Revenue Management

Revenue Management
Revenue Management (RM) is the process of maximizing revenue by optimally allocating inventory, forecasting demand and correct pricing of the inventory. It combines knowledge about market segmentation for pricing along with advanced statistical analysis to increase revenue. Price discrimination is the key factor for revenue management.

Where does RM apply?

Opportunities for revenue management arise when:
  1. Inventory is perishable
  2. Capacity is fixed
  3. Market segmentation based on willingness to pay is possible
  4. Sales are made in advance
  5. High fixed costs and low marginal costs
Selected Assignments

Some typical engagements with our client include:
  • Revenue Management suite for broadcasters
  • Revenue Management system for a low cost airline in the Middle East
    Maximize profit by:
  • Forecasting demand
  • Demand-sensitive pricing
  • Optimal llocation of inventory
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