Write 12 pages with APA style on Assessment title: Revenue Management, pre-conditions and implementation. Revenue management has become one of the primary and crucial areas for business management. Since last five years, there has been a significant improvement in the field of revenue management and multiple technological developments have been incorporated in this field. Now, it is also known as revenue management solution which is entirely backed by IT systems. In case of airline industry, where most of operational tasks are mainly executed through proper technical system, revenue management has become an indispensible task. In airline business, revenue management solutions deal with multiple operational process including advance ticket bookings, estimation of passengers’ demand, ticket cancelations etc and these process involves cost. However using revenue management solutions that utilize mathematical algorithm models, the cost relating to the stated operating process can be reduced to its optimum level that enhance the overall profitability level.
Revenue management in airline industry has become a regular and indispensible phenomenon. Therefore, in order to analyse the prevailing practices pertaining to revenue management, it is necessary to analyse the nature and characteristics of airline industry. Revenue management is also often termed as yield management in case of airline industry. Yield management is mainly applied to the industry which has perishable resources mainly the inventory (Dolgui and Proth, 2010, p.9). An industry that deals with high perishable resources and industry, revenue management solution is more required. In case of airline industry, it deals with super perishable inventory i.e. the seats available for passengers. The passengers’ seats cannot be stored in inventory as it perishes as soon as flight takes over for its destination.