Many companies with perishable inventory (airplane seats, hotel beds, parking lots, media assets) can increase their turnover by selling the entire inventory. Revenue optimization occurs when inventory is sold at different prices, responding to market demand and customer specific needs.
Revenue Management, a method that has been elevated to an art form in aviation over the past half century, continues. It is the collection of policies, processes, skills and organizational structure. Based on this, it is possible to make the right interventions. This with the aim of targeting the commercial organization and having the right action taken.
Revenue Management provides insight into the current commercial situation. To then determine how you can achieve an optimal result given the (price) policy and expected demand. The starting point is the right price, for the right customer, in the right channel at the right time.
Some Revenue Management tactics that may be of interest to your company:
- Optimize the sales process by applying dynamic price optimization and showing real-time in an e-commerce environment or displaying B2B tool
- Put Revenue Management at the heart of your business by partnering the Revenue Management team with Marketing and Sales
- Tapping into new target groups by also making your offer directly bookable online
The success of Revenue Management is measured by the development of the occupancy rate and the price per unit. This development is compared with historical and future developments, budget targets and trends in the market. Would you like to learn more?Let us know! Or read this insight.