Revenue Management

Revenue management in tourism is the application of price discrimination to demands for services that vary seasonally and between travel types. Created by the airline industry in the 1980s, it has evolved rapidly along with developments in computer technology and management systems and now includes a wide range of strategic practices and tools to deal with distribution channels, social media, competition, and different customer types for almost all hospitality industries. It is generally agreed that Robert Cross was instrumental in defining the term by the often-used quote from his 1997 book Revenue Management: “Revenue Management ensures that companies will sell the right product to the right customer at the right time for the right price” (p. 52).

Changes in technology have had a dramatic influence on ...