Revenue Management Task
A Revenue Management Task is a business task that predicts consumer behaviour at the micro-market levels and optimize product availability and price to maximize revenue growth.
- Example(s):
- See: Pricing Strategy, Consumer Behaviour.
References
2020
- (Wikipedia, 2020) ⇒ https://en.wikipedia.org/wiki/Revenue_management Retrieved:2020-12-9.
- Revenue management is the application of disciplined analytics that predict consumer behaviour at the micro-market levels and optimize product availability and price to maximize revenue growth. The primary aim of revenue management is selling the right product to the right customer at the right time for the right price and with the right pack. The essence of this discipline is in understanding customers' perception of product value and accurately aligning product prices, placement and availability with each customer segment.[1]
- ↑ Cross, R. (1997) Revenue Management: Hard-Core Tactics for Market Domination. New York, NY: Broadway Books.
2020
- https://www.revfine.com/revenue-management-vs-yield-management/
- QUOTE: ... As a pricing strategy, yield management is concerned with generating the maximum possible revenue from a perishable inventory. Within hotel management, this means it is concerned with using data to ensure the right room is sold to the right customer, at the right time, for the highest possible price.
Effectively, it is about using price discrimination to optimise business results. Hotel guests are conditioned to paying different prices for the same product, depending on when they are staying at a hotel, how close to their check in date they made the booking, the level of demand for rooms and various external factors.
Revenue management is a related concept, although it has a wider focus. It is concerned with maximising revenue from hotel rooms in much the same way, but also deals with the cost of selling and money made from other aspects, like food and laundry services. It can, therefore, be described as being concerned with the big picture. ...
- QUOTE: ... As a pricing strategy, yield management is concerned with generating the maximum possible revenue from a perishable inventory. Within hotel management, this means it is concerned with using data to ensure the right room is sold to the right customer, at the right time, for the highest possible price.
1998
- (Kimes et al., 1998) ⇒ Sheryl E. Kimes, Richard B. Chase, Summer Choi, Philip Y. Lee, and Elizabeth N. Ngonzi. (1998). “Restaurant Revenue Management: Applying Yield Management to the Restaurant Industry.” Cornell Hotel and Restaurant Administration Quarterly 39, no. 3 ** ABSTRACT: In principle, restaurant operators should be able to apply the time-based philosophy of revenue management to restaurant meals. To do so, however, requires a revision in the way most restaurateurs traditionally have viewed sales. Most restaurants track item contribution margin, sales per server, revenue per day part, or similar operating ratios. A different type of measure, revenue per available seat-hour, integrates the duration of the meal as a factor in the revenue calculation. Certain elements of current-day restaurant practice, such as differential pricing (e.g., early bird specials, AARP discounts), promoting special events (such as wine tastings on off nights), and managing table turnover carry the seeds of revenue management, but few restaurants have established the necessary strategic approach to assemble those tactics into a coherent revenue-management strategy. This article seeks only to establish a framework for such a strategy, and not to set a practical road map for its execution.