Chapter 12

Making Revenue Management Decisions

Revenue management should be an intentional, high-level management activity. A company should have a portfolio of revenue management techniques that it employs, with some knowledge of the effectiveness of each. A good system of analyzing revenue management decisions and tracking and evaluating their results is essential to achieving revenue growth and greater profitability.

Michael Treacy, in his best-selling book Double-Digit Growth, suggests that many companies do not do a good job of managing revenue growth. Growth is not achieved by chance or luck, or by coming up with an occasional hot product, or by having a temporary surge of business.1 Rather, it involves a five-part discipline of protecting ...

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