Pricing and Revenue Management

Abstract

The focus of this chapter is on the strategic role of price in revenue management (RM). In order to successfully use price as a strategic weapon, firms must address two questions: what prices to charge and how' to determine which customers or market segments should be offered those prices. In addition, companies must study and understand both customer and competitive reaction to their use of RM pricing. In this chapter, I address these questions through a review of the relevant literature and of current practice.