Title: Holistic yield management
Authors: Steven B. Elkins
Addresses: Braun Consulting, 821 Marquette Avenue S., Suite 2500, Minneapolis, MN 55402, USA
Abstract: As practiced today, the discipline of yield management enables firms in capacity constrained service industries such as the travel industry to improve their revenue by applying microeconomic principles to the task of managing the availability of rates. Yet few firms fully realise the potential gains that they anticipated when they initiated their yield management program. At most firms, potential revenue improvements are eroded by open fighting between the revenue management and sales departments and by the failure of the revenue management and capacity planning departments to work together effectively. This paper explains the reasons for these failures and describes a holistic, marketing-wide framework for resolving these conflicts. Holistic Yield Management involves the entire Marketing Department, working in concert towards the goal of maximising profits: holistic adj: emphasising the functional relationship between parts and wholes.
Keywords: yield management; revenue management.
International Journal of Services Technology and Management, 2001 Vol.2 No.1/2, pp.46-58
Available online: 04 Jul 2003 *Full-text access for editors Access for subscribers Purchase this article Comment on this article