A history of revenue management and the advent of next-generation RM

The arrival of price transparency and dynamic pricing in the travel and hospitality industries – fueled by the rise of the Internet and a dynamic hyper‐informed consumer – demands a fresh approach to traditional Revenue Management (RM). This article explores how these disruptive changes resulted in Pricing and RM innovations that led to the rapid expansion of the discipline into industries such as automotive, cruise lines and retail. In addition, the article provides real‐world examples of innovative RM strategies undertaken by companies such as InterContinental Hotels Group, which decided to make a giant leap from traditional yield management to price optimization, then continued to leverage predictive analytics coupled with RM capabilities.