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Unformatted text preview: l. Moreover, many firms, includ ing hotels, restaurants, and universities, practice revenue
management. A good class discussion can be generated
by asking students to discuss how other organizations
practice yield management without all of the publicity
(often adverse publicity) that airlines receive.
Hotels have various approaches, from weekend
specials, to “points,” to computerized pricing to adjust
to daily volume changes.
Restaurants have coupons, early bird specials, and
special prices on slow nights. Huge portions of restaurant
customers have some sort of discount. The authors have
seen one figure that as high as 30 percent of restaurant
customers use coupons (the figure varies substantially,
depending on the type of restaurant included.).
Universities have so many grants, scholarships, and
loans that in many universities most of the students have
some sort of “deal”; this is revenue management for the
These revenue management techniques are
designed to appeal to various market segments. And the
pervasiveness of the techniques proves that it does
From the customer’s perspective there is often
resentment at sitting next to someone on the airplane
who has paid half as much for the same flight as you
paid—or going to a restaurant an...
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- Spring '14