What is the return management?

Revenue management is a process by which the organization analyzes and predicts the behavior of customers to determine the best way to increase profitability by minimizing waste of resources subject to subject. The deadline is the former CEO of American Airlines and chairman Robert Crandall. It is also known as revenue management. The revenue management is most often used in the hotel and the aerospace industry to maximize profitability in available seats and rooms. This process involves cultivating understanding potential and existing customers, timing and prices of promotional efforts correctly and anticipating market changes. To be successful, the yield management process must take into account finance, marketing and business operations. These elements combined usually provide a clear picture of what the organization offers and what is needed on the market. It will also help to determine what the priurrent services will be offered by certain types of customers and if specific promotional actions should be triggered. May also include surveys or studies of behavior of the Actthe Aznici. Most revenue management programs will include investigating purchasing formulas in terms of organization and wider industry as a whole. Review of past interactions and customer service problems can also provide instructions on the combination of elements would best maximize profits.

The yield management works according to the principle of shifting values ​​for products. The aim is to get the maximum value at any time from each available entity. This usually leads to a number of prices for each product, depending on the market conditions and the behavior of different groups customers. For example, hotels and aircraft seats are in the summer months and during the holidays for bonuses, but in the off -season they can be reduced to attract customers who would not otherwise buy at all.

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yield management process includes not only the selection of the right elements, but also combines them in the most advantageous way. For this reason, there are a number of ways of timing,Price, targeted customer type and specific offered products. Many organizations regularly move the variables to determine the optimal combination of elements at the moment. This is particularly important for face -to -face management in the face of unpredictable world or organizational events that can affect sales at a temporary or permanent level.