CHAPTER 5
Revenue Management Techniques
Companies seeking to manage their revenue function may use a variety of techniques to accomplish their goal of increased revenue with sustainable profit improvement. This chapter discusses several of these approaches:
• Sale or promotional pricing (discounting)
• Price matching
• Markdowns
• Unlimited-use pricing
• Overbooking
• Bundling and unbundling
• Free as a price
• Customer reward programs
Sale or Promotional Pricing (or Discounting)
Discounting is probably the most widely used revenue management technique. In general, a discount is a temporary price reduction available to all customers. Sometimes called a sale or a special promotion, discounting seeks to stimulate demand for a period of time. ...
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