311_session_17_revenue_management_hiroshi

311_session_17_revenue_management_hiroshi - Introduction to...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Introduction to Revenue Management and Decision Trees BUAD311 Session 17 Hiroshi Ochiumi
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 Objectives Introduction to Revenue Management History How it works Decision making under uncertainty How to use Decision Trees
Background image of page 2
3 RM: A Basic Business Need What are the basic ways to improve profits? Profits Profits $ Reducing Cost Increasing Revenue Revenue Management
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4 Revenue Management forecasting capacity control overbooking optimization market segmentation pricing
Background image of page 4
5 ‘Selling the right seats to the right customers at the right prices and the right time.’ (American Airlines 1987) Revenue Management Definitions (Squeezing as many dollars as possible out of the customers) ‘Integrated control and management of price and capacity (availability) in a way that maximizes company profitability.’
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 Revenue Management History RM was ‘invented’ by major US carriers after airline deregulation in the late 1970’s to compete with new low cost carriers Matching of low prices was not an alternative because of higher cost structure American Airline’s ‘super saver fares’ (1975) have been the first capacity controlled discounted fares
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 20

311_session_17_revenue_management_hiroshi - Introduction to...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online