Revenue management does far more than manage revenues

Revenue management (RM) encompasses far more than ‘revenue’ and is doing far more than ‘managing’ these areas. It is evolving into a management science that is more accurately described by the words ‘profit optimisation’. Revenue management is both a science and an art that is impacting many areas other than ‘revenue’. It gathers and analyses data, makes and implements numerous decisions and then uses this intelligence to control many areas of the business process, both internally and externally. Then the goal is to assure that the resulting decisions are properly implemented. Many times the critical constraint on RM's success is whether senior management will allow all RM techniques to be properly applied in a formal and systematic approach, throughout the business.