BUSINESS
HISTORY OF REVENUE MANAGEMENT.docx

HISTORY OF REVENUE MANAGEMENT.docx - HISTORY OF REVENUE...

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HISTORY OF REVENUE MANAGEMENT The idea of yield management originates from airline companies in the United States. These were the first ones to apply this tactic, that’s why I put a little more emphasis on the airline companies during my thesis. Before 1978 the airline industry in the United States did not have much freedom, in fact the fares and the schedules were controlled by the Civil Aeronautics Board (CAB). During this period flying was a luxury and fares were very high.In 1978 the whole airline industry was shocked and everything changed, when the Congress passed the Airline Deregulation Act. It said that in four years the industry would be completely deregulated. This meant companies were free to decide their fares, and their domestic routes. This was a huge change from a totally restricted industry to complete freedom. The main reason this Act was passed, was to encourage new entrants into the business. One of these newcomers was PeopleExpress. It was a small company with extremely low prices, 70% below the bigger airlines. It came
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