| Article ID: | iaor20083530 |
| Country: | United Kingdom |
| Volume: | 6 |
| Issue: | 4 |
| Start Page Number: | 264 |
| End Page Number: | 268 |
| Publication Date: | Dec 2007 |
| Journal: | Journal of Revenue and Pricing Management |
| Authors: | Pinchuk Steven |
| Keywords: | yield management |
Revenue Management (RM) should optimise profits instead of managing revenues. Existing systems are not determining the optimal prices; instead they are determining the displacement price threshold based on historical or preset prices. In the future, RM should optimise profits based on pricing that incorporates many consumer oriented factors including price elasticity.