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Easy Profit: A Revenue Management Pilot

Published 03 Jan 2006
Reference 5341
Topic Marketing
Summary

This case introduces the concept of Revenue Management as a tool to maximize profits and provide competitive advantage to firms in diverse industries. The case and accompanying simulation are set in the airline industry, where revenue management originated.

Teaching objectives

The objective of the exercise is to build intuition on how basic revenue management techniques work and under what circumstances they are most effective. The reader takes the position of revenue manager in charge of selling seats on an airplane. The goal is to devise a sales strategy for capturing the maximum rent from the market. Static and dynamic booking limit strategies are to be tested in the accompanying simulator.

Keywords
  • REVENUE MANAGEMENT
  • CAPACITY MANAGEMENT
  • YIELD MANAGEMENT
  • INVENTORY MANAGEMENT
  • AIRLINE
  • SERVICE MANAGEMENT
  • PRICING
  • AR2006
  • AR0506
  • RD0306
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