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An overview of revenue management, also known as yield management, focusing on its application in environments where adjusting supply is impossible. It highlights the importance of segmenting customers based on their willingness to pay and controlling the average price by managing the customer mix. The document also outlines suitable environments for revenue management, such as those with perishable capacity and opportunities for customer segmentation, and discusses the challenges involved, including demand forecasting and dynamic decision-making. It also addresses how to construct good 'fences' to differentiate among customers, such as non-refundability and saturday-night stay requirements, and the complexities of multi-leg passengers and multi-day reservations. Useful for students and professionals in business, hospitality, and tourism.
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