Revenue Management Essay

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The first article is on the first article is “Revenue management: the impact on business-to-business relationships” by Xuan Wang and David Bowie, published on 1st November 2009. The article aims to understand the topic of revenue management and business to business relationship management and also to find out whether is there a connection between the both also as well as explaining the support of the damage revenue management can eventually come up to do a business to business relationship if there is any connection between them. The article starts by explaining what revenue management is all about and how it first began. According to this article the revenue management as a result of an airline that was allowed some freedom in the industry and also to set their own price market. The theory of revenue management was developed to help liberate some industries in terms of market demand and face up some challenges of competition. It also mentions about that in the hotel industries that also have been adapted revenue management practices and also, have increased their revenue by 3 to 7 percent, which results in substantial profits without the capital expenditures. The second section of this article also states that about the impacts that revenue management has on the customer affiliation in the hotel industry and picks out on a specific area of a customer affiliation in relation to the revenue management is much undervalued area of research and not enough of information was found in the topic, but insufficient information that exists that if the hotel industries targets more to their revenue management strategies, this might affect their affiliation with the customers, this means loss of valued customers visiting around(Wang and Bow... ... middle of paper ... ... never achieve a good customer relationship in addition to raise revenue at the same time while doing help other management teams in order to gain their company maximum revenue over different periods of time. The essay makes it simple to understand that while revenue management specializes in short-run revenue maximization along with taking care of very good customer relationship will probably gain within extended revenue maximization, they might both move in hand. The truth is, taking on in order to revenue management techniques in a hotel makes it easier regarding hotels to understand their particular dedicated along with trustworthy customers that will create extended revenue and so permit hotels to provide a lot more focus on these within serving their particular customers correct without lacking incomplete on the providers offered to various other guests.
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