Revenue Management for Service Organizations

Chapter 3

Pricing Strategies and Yield Management

Question: How do you choose which airline to fly with?

First passenger: I always travel on the same airline—so I can get lots of air miles.

Second passenger: I always travel on the same airline—because they have the best service.

Third passenger: I travel on whichever airline has the right combination of hubs and connecting flights at the right times—I hate having to transfer airlines and I hate having to wait for connecting flights.

Fourth passenger: I pick the airline that offers the cheapest price.

Businesses often fall in love with their products and services and overlook the reasons why customers buy them. The responses here show that customers can value different things, and what is most ...