Back to the future? Directions for revenue management

A wide range of new industries will join airlines, hospitality and travel companies in embracing revenue management (RM) as an essential component of their business strategies. Large databases of consumers information developed to improve ‘customer relationship management’ (CRM) will provide inputs to consumer choice models, which will in turn allow prices to be set based on estimates of demand elasticity. At the same time, continued advances in optimisation techniques and computation speed will allow different price–product combinations to be offered to each individual consumer.