Three decades of revenue management: What’s next? This paper presents an overview of the future of revenue management (RM) based on interviews conducted with industry leaders around the world. | Three Decades of Revenue Management: What’s Next? Silvia Milla and Stowe Shoemaker Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Introduction This paper presents an overview of the future of revenue management (RM) based on interviews conducted with industry leaders around the world. Four major areas were identified as having the greatest growth potential in hotel RM: integration of customer relationship management (CRM) and RM, pricing, segmentation, packaging, group RM, and organizational structure. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved CRM and RM Industry experts see the integration of CRM and RM as one of the areas with the most potential for the future of RM. It is becoming increasingly difficult for hotels to differentiate both their products and their pricing among their competitors. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved CRM and RM Cont. The integration of PMS, RES and RM systems is still a challenge for many companies as the technology systems are not all fully compatible. In the next few years, further collaboration among software vendors will need to take place in order to solve conflicts between systems, such as having different aggregation levels in customer segmentation. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved CRM and RM Cont. The analysis of customers’ buying patterns based on their lifecycles can also be an interesting area for the future of RM, especially for hotel companies that focus on long-term relationships. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Pricing, Segmentation, and Packaging Companies have recently started to realize the importance of pricing for revenue maximization in addition to optimizing inventory allocation. At present, pricing strategies do not make a distinction between customers’ frequency of stay. Understanding consumers’ buying behavior and price elasticity in order to be able to charge the right price to . | Three Decades of Revenue Management: What’s Next? Silvia Milla and Stowe Shoemaker Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved Introduction This paper presents an overview of the future of revenue management (RM) based on interviews conducted with industry leaders around the world. Four major areas were identified as having the greatest growth potential in hotel RM: integration of customer relationship management (CRM) and RM, pricing, segmentation, packaging, group RM, and organizational structure. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved CRM and RM Industry experts see the integration of CRM and RM as one of the areas with the most potential for the future of RM. It is becoming increasingly difficult for hotels to differentiate both their products and their pricing among their competitors. Copyright © 2007 by John Wiley & Sons, Inc. All rights reserved CRM and RM Cont. The integration of PMS, RES and RM systems is still a challenge for .
