Revenue Management

Also known as: Yield Management, Dynamic Revenue, Revenue Optimization

Strategy for optimizing revenue by adjusting prices and availability based on predicted demand, customer segment, and timing.

Revenue Management (RM) is the practice of optimizing total revenue by dynamically adjusting prices, product availability, and capacity allocation based on predicted demand, customer segment, and purchase timing. Originating in the airline and hotel industries, today it applies to retail, streaming, telecommunications, and any industry with variable demand.

In market research, RM requires deep data on customer segments: their differentiated price elasticity, moments of greatest willingness to pay, and value vs. price perception. Conjoint Analysis and segmentation research are fundamental inputs for effective RM strategies.