Chapter 1

Introduction to Revenue Management

Revenue management has been an area of practice for about 25 years, though it has made few inroads to the general management literature or particularly into the accounting and finance arena. This book brings together much of the work on revenue management to date and discusses it from a management and financial analysis perspective. Revenue management should be a part of the focus of any executive; the analysis techniques should be in any financial manager’s toolkit.

One common approach to achieving revenue growth is to buy it—that is, via mergers and acquisitions. Indeed, growth by acquisition has been the strategy of a number of major companies. Although acquisition is a valid approach, it is not ...

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