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Non Traditional Revenue Management Model

985 Words4 Pages

In a present study done by Ballestero, Serrano, Domecq (2014) show how revenue management models have been implemented and the issues faced by them.
The first model proposed by Jones and Hamilton (1992) divided revenue management into seven phases, from development of RM culture to evaluation. This model however neglected to recognize key and strategic movements and made no earning for customer relationship, in spite of the fact that it did mirror the significance of HR in the process and broke down genuine or 'unconstrained interest' by social event information on cancelations, decays and dissents. An advanced model was later proposed by Donaghy et al (1995), and included ten implementation phases. Though this model did focus on customer- …show more content…

Revenue management is also a common practice in manufacturing industries. Hence stating that revenue management has a huge impact on traditional and non-traditional revenue management industries. Heo, Lee, Mattila, and Hu (2013) found the negative effects of price difference on customer’s fairness perceptions in the context of restaurant RM, and Guerriero, Miglionico, and Olivito (2014) proposed a dynamic formulation of the parties mix problem with a linear programming approximation. This hence states that small details of revenue management have great impacts on profits of the business. The increasing number of smartphone users and the prevalence of Web technologies may help non-traditional RM industries to control demand and to enhance revenue better than ever before. For example, mobile platforms and social commerce can be used for restaurant RM as distribution channels in the same way that hotels and airlines use online travel agencies (Lapp & Weatherford, …show more content…

individual client or company key accounts, the results do state that revenue management can cause a conflict in customers due to different pricing, stock control and availability control schemes used to maximise a hotel firms day to day revenue. More so, from a customer relationship perception, these marketing approaches seem to be solutions that are sued to reduce the damaging effects of revenue management on customer conflicts. In other words, these tactics are used to make revenue management looks more acceptable and a relatively fair practise on the service industries, keeping in mind this still remains revenue oriented and not relationship oriented (Kimes and Wirtz, 2002; Wirtz et al., 2003). Customers feel that revenue management destroys long-term relationship strength and trust amongst two companies. Indeed in a few cases key accounts indicated that they actually terminated their relationship with a company because the opportunistic behaviour of replacing a key account with higher paying customers was exposed (Mc Donald et al,

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