Addressing an emerging course in Revenue Management, this textbook covers the basic quantitative models in revenue management (RM) and price optimization. Having grown out of Operations Research, RM is now at the forefront of the pricing innovation. The text introduces the reader to the key concepts in RM practices, such as capacity control and overbooking, and presents important prescriptive analytics models for pricing strategy. Numerous examples are provided to help the reader understand the concepts and apply the models in order to improve business decisions and gain competitive advantages. These examples illustrate the industrial applications of RM, e.g., in airlines, hotels, and car rental agencies. This textbook has been compiled in such a way as to offer an appropriate balance between theoretical and practical aspects of the field.
1 Introduction
2 Single-Resource Capacity Control
3 Network RM
4 Overbooking
5 Price-Response Models
6 Price Optimization
7 Forecastion in RM