311_session_25_revenue_management

311_session_25_revenue_management - Introduction to Revenue...

Info icon This 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 25
Image of page 1

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

View Full Document Right Arrow Icon
2 Objectives Introduction to Revenue Management History How it works Decision making under uncertainty How to use Decision Trees
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
Image of page 3

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

View Full Document Right Arrow Icon
4 Revenue Management forecasting capacity control overbooking optimization market segmentation pricing
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.’
Image of page 5

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

View Full Document Right 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
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern