ABSTRACT
The use of the newer-generation thinking will reduce operating costs and generate more revenues, but, even more important, it will lead to the development of systems and processes that result in much greater agility and robustness in the overall planning process. A similar argument applies to the second important airline function, revenue management. On the inventory side, to maximize revenues, airlines began to switch from the use of leg-based systems to O&D-based systems. Revenue management needs to work around three basic dimensions: prices, inventory, and time. On the inventory side, to maximize revenues, airlines began to switch from the use of leg-based systems to O&D-based systems. The customer experience can affect the sale of high-margin ancillary services. But the customer experience is now also part of revenue management in an indirect way: it is part of the product, which, in turn, is an integral component of revenue management.
