 Conditions,
Ingredients and Boundaries |
Revenue Management suits the service industries where capacity
is fixed, where the demand is unstable and where the market
can be segmented. Combining these features with of low marginal
costs and selling that perishable product to their customers
well in advance of consumption, are the characteristics of
companies that can adopt yield management. Developing these
ideas further, Kimes (1997) has outlined a number of pre-conditions
for the success of RM and suggested a number of factors or
ingredients which are prerequisites for the implementation
of RM as a functioning, workable system. This is further
adapted to establish the operating boundaries of RM.
|
