This model was later transmuted into other areas and today we can find it present in companies from all sectors thanks to the results it can generate! especially when supported by digital transformation and the technological tools available.
What is Revenue Management?
This technique! known as Yield Management! has as its main purpose a pricing methodology based on the forecast of demand and stock of a company for a given period. The objective is to maximize business opportunities by attracting the ideal client at the right time with the most profitable channels.
We could say that Revenue Management provides companies with a system for optimizing their sales uk people whatsapp number channels through a mathematical combination of the factors customer! time! price and channel.
Technology and digitalization have added even more precision to this technique: for example! data analysis —driven by big data or data science—has allowed businesses to understand in detail the factors that determine Revenue Management and! in this way! gives organizations greater effectiveness in this aspect.
How does Revenue Management work?
Through principles! Revenue Management is able to optimize each sales strategy! these are the main ones:
Market segmentation
By dividing the market into segments based on price sensitivity! purchase urgency! understanding explicit and implicit information purchasing behavior! and other demographic and psychographic factors.
In this way! different prices and packages can be offered to each segment to maximize total revenue.
Dynamic pricing
Revenue Management can adjust prices in real time based on demand! supply! competition and other external factors!
Capacity management
It optimizes the use of available resources! such as hotel rooms! airplane seats! or rental vehicles. Management is thus able to decide how many resources to allocate to each market segment and at what price.
Inventory control
Revenue Management is about controlling the availability of products or services hong kong lists for different market segments. For example! by using techniques such as overbooking! to ensure maximum capacity utilization! minimizing the risk of loss of revenue due to cancellations or no-shows.