What is revenue management?
- Revenue management is a discipline that allows an organization to match predicted demand for its products with available supply such that it maximizes revenue generated against its available inventory
In which industry settings does revenue management work the best?
- Where its customer base and the channels through which customers purchase its products are highly segmentable i.e. where data that describes customer attributes (i.e. demographics, spending patterns, purchase behaviors, etc.) is readily available
- Where purchase behavior varies significantly between various customer segments
- Where pricing is highly elastic i.e. the amount of product sold is highly dependent on price offered
- Where retail or spot prices offered can be changed and disseminated rapidly
- Where opaque and stealth methods of distribution can be made available to disguise the distribution of distressed inventory at a lower price
- When inventory is highly perishable
- Where an organization’s cost structure is highly fixed in the short term
Examples of industries where revenue management can make a difference
- Travel i.e. airlines, hotels, car, truck and equipment rental companies, cruise lines, parking operations
- Entertainment i.e. sports venues, theaters, shows, amusement parks
- Other leisure related e.g. RV rentals, resorts
- Broadcasting and media
Target Rich Solutions’ Approach
- Our professionals have real world experience having headed up major company’s Revenue Management departments
- They employ both strategic and tactical best practices to achieve objectives consistently
- They employ the latest technology in automated rate shops and predictive analytics
What makes our approach unique in this field?
- Knowledge of quantitative techniques and supporting technologies that can be applied, depending on the unique situations presented
- Ability to integrate revenue management with other organizational disciplines
- Proven experience in the above industry settings
- Track record of measureable results where application of revenue management techniques have been monetized by client organizations