What is revenue management? Revenue management is a concept of adopting the number of implementation of emerging. Not all the business field using this concept of revenue management. The first revenue management was applied in the airline industry. But, not for so long, the travel and hospitality companies also use this revenue management. Although, the travel and hospitality company are use this concept because of the term ‘adapt or perish’. In now days, this revenue management system and concept have been adapted by many industries, including manufacturing, advertising, energy, hi-tech, telecommunications, car rental, cruise line, rail road, and retail. This fast improvement makes people come with argumentation that many industries in the future have to use this revenue management method if they want to survive.
The use of revenue management mostly to find strategy that calculate consumer behavior at the micro market level and also make the most of product availability and price to maximize revenue growth. The main action of revenue management is to maximize revenue from offered business. The revenue management is a solid management science that utilizes statistical and mathematical concepts, such as make a good review about the consumer behavior with dynamical changing of market environment. The revenue management also should establish the most effective ways to price and inventories to gain the prospecting consumer and make a real-time changing base on market condition changing. More over, revenue management also becomes a decision support reserve for marketing and operational purpose.
Revenue management is not useless action and strategy. Revenue management is directing the company into the right action for gaining right customer with the right price and the right time. This action will definitely make the company not to waste they time to growth bigger and bigger. But, the revenue management is not a simple concept to do. The execution of this method should be do with high attention if want to gain the perfect result. To overcome this problem, people usually compound the model of revenue management in the early use and the prediction they have. For make the compound action easier, there is a lot of revenue management models that succeeded bring the company into success. To reduce the pain of revenue management, we can use some implications such as open system, framework flexibility, execution of phase, front-end platform, time and cost, demand forecasting and pricing,