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2011, vol. 16, iss. 2, pp. 37-45
Strategic revenue management
University of Economics, Prague, Czech Republic

emailpfiala@vse.cz
Keywords: revenue management; strategy; capacity control; pricing; auctions; customer behavior; multicriteria decisions; analytic network process; dynamic network process
Abstract
The paper presents revenue management as a strategic instrument. Revenue management is the process of understanding, anticipating and influencing consumer behaviour in order to maximize revenue. The challenge is to sell the right resources to the right customer, at the right time, at the right price, through the right channel. Revenue management will evolve to a more strategic approach that accounts for all revenue streams. In order to truly maximize revenue in a coherent and effective way over the long term, revenue managers must move beyond short-term tactics to embrace long-term strategic planning. Revenue managers who recognize and apply the full arsenal of strategic revenue management are able to handle any challenges offered by a dynamic marketplace. The integration of tactical and strategic revenue management helps the management generate demand with proven marketing measures. Network revenue management models attempt to maximize revenue when customers buy bundles of multiple resources. An Analytic Network Process (ANP)-based framework for network RM problems structuring and combining specific methods is presented. RM addresses three basic categories of demand management decisions: price, quantity, and structural decisions. Specific models are used to model and solve basic RM decisions. Combinations of the solutions are given by subnetworks in an ANP model.
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article language: English
document type: unclassified
published in SCIndeks: 12/07/2011