Revenue Management

Managing is like holding a dove in your hand. Squeeze too tight, you'll kill it. Open your hand too much, you let it go.

Tommy Lasorda

Chapter overview

This chapter will:

• define and identify the objectives of revenue management; • outline the circumstances that favour deployment of a revenue manage-

ment system (RMS); • describe the essential differences between leg-and segment-based rev-

enue management on the one hand and origin and destination (O & D) itinerary management on the other;

• identify the critical components of an RMS; and • highlight differences between the revenue management of passenger

and freight traffic.