COMMERCE 2OC3 Chapter Notes - Chapter 13: Car Rental
Operations Textbook
Chapter 13
Revenue Mgmt.
- Revenue Mgmt. : Capacity decision that determine the allocation of resources to max.
revenue or yield
o Allocatig copa’s scarce resources to cust. At prices that ill a. reeue
- Orgs. That have perishable inv. (airlins, hotels, car rental agencies) have created interest
in potential yield mgmt..
o Service or product can be sold in advance of consumption
o Fluctuating demand
o Relatively fxd. Resource (capacity)
o Segmentable demand
o Low var. costs and high fxd. Costs
- To make rev. mgmt.. work, there are three issues
o Multiple pricing structures
▪ Structures must be feasible and appear logical to the cust.
o Forecasts of the use and duration of the use
▪ How many seats should be available; how much should the customers
pay at what price
o Changes in demand
▪ Managing the increased use as more capacity is sold
▪ Dealing with issues that occur because the pricing structure may not
seem logical
▪ Managing issues such as overbooking because the forecast was not
perfect
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