Smart   Consulting


Revenue Management

Maximizing revenue through extraction of consumer surplus

  • Revenue Management

    Revenue gain of 4% or higher

Revenue Management or Yield Management is selling the right product to the right customer at the right time for the right price and with the right pack.

Revenue Management 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.

  • Perishable Inventory
  • Fixed Capacity
  • Possibility of varying cost for the same inventory
  • Advance Sales
  • High fixed costs and low marginal costs

Conclusion

  • Revenue Management combines knowledge about market segmentation for pricing along with advanced statistical analysis to increase average revenue per unit of available capacity