Excerpt] Most hotel managers are familiar with the term revenue management (RM), but RM for the hotel industry has evolved considerably from the original practice, which was developed two decades ago by American Airlines. As that company stated in its 1987 Annual Report, RM's goal is to ...
Building, in part, on our experience in other industries, we have helped airlines set up “structured experiments”—methodologies that predict, with statistical significance, the impact of any revenue-management move. These models cut through the complexity of an airline revenue-management system to ...
Revenue management, first termed yield management, appears to have originated with American Airlines in 1985 (Cross, 1997, Smith et al., 1992). Responding to a threat posed by emerging low-fare airlines, notably PeopleExpress, American developed methods to selectively reduce fares at times and pl...
About fifty years ago, airlines began to experiment with fluctuating fares by controlling seat capacity. American Airlines, one of the early adopters of revenue management, saw revenue increase by over 14% and profits climb by nearly 50%. Other industries, like hospitality, took notice and impleme...
(1992) in their seminal paper Yield Management at American Airlines. In the 90s, airlines and RM vendors started to develop "origin-destination" RM systems in response to the restructuring of airline networks around large connecting hubs. In the 2000s, the airline RM community was caught off-...
Bill Brunger, retired Senior Vice President of Continental Airlines writes about four operational difficulties of working with RM in Inventing RM: How it Felt to Write a Revenue Management (RM) System Without Precedents the Scene. First of all, weak theory. Bill knew about Belobaba’s (1986) ...
Define Revenue Passenger Miles. Revenue Passenger Miles synonyms, Revenue Passenger Miles pronunciation, Revenue Passenger Miles translation, English dictionary definition of Revenue Passenger Miles. abbr. revolutions per minute American Heritage® Dic
Since American Airlines successfully applied revenue management (RM) to raise its revenue, RM has become a common technique in the airline industry. Due to the current hub-and-spoke operation of the airline industry, the focus of RM research has shifted from the traditional single-leg problem to...
The benefits of yield management are often staggering; American Airlines reports a five-percent increase in revenue, worth approximately $1.4 billion dollars over a three-year period, attributable to effective yield management (Smith et al. 1992). Yet, despite its growing importance, there appears ...
Yield management at American Airlines Interfaces (1992)View more references Cited by (33) A model of negotiation issue–based tactics in business-to-business sales negotiations 2017, Industrial Marketing Management Citation Excerpt : In complex B2B transactions, this tactic likely is an effective, indi...