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Revenue management may also be defined as the use of differential pricing based on customer segment, time of use, and product or capacity availability to increase supply chain profits Most common example is Airline pricing
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Prices must be set with barriers such that the segment willing to pay more is not able to pay the lower price
Example: Business travelers v/s Holiday travelers
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Discounting can shift demand from peak to off-peak times. Charge higher price during peak time and lower price during off-peak time in order to maximize revenues
(Example: Discounts given by retailers in Jan/Feb and July/Aug)
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