IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v15y2016i3d10.1057_rpm.2016.15.html
   My bibliography  Save this article

Evolution of yield management in travel

Author

Listed:
  • Ben Vinod

    (Sabre Holdings)

Abstract

Yield management came into existence on a significant scale a few years after the deregulation of the US airline industry in 1978. This article reviews the evolution of yield management in the airline industry and how it has influenced a range of travel related adjacent service industries with perishable inventory such as hotels, rental car and cruise lines. Current trends and new value propositions in pricing and yield management are also addressed.

Suggested Citation

  • Ben Vinod, 2016. "Evolution of yield management in travel," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 203-211, July.
    • Handle: RePEc:pal:jorapm:v:15:y:2016:i:3:d:10.1057_rpm.2016.15
    DOI: 10.1057/rpm.2016.15
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/rpm.2016.15
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/rpm.2016.15?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gustavo Vulcano & Garrett van Ryzin & Richard Ratliff, 2012. "Estimating Primary Demand for Substitutable Products from Sales Transaction Data," Operations Research, INFORMS, vol. 60(2), pages 313-334, April.
    2. Barry C. Smith & John F. Leimkuhler & Ross M. Darrow, 1992. "Yield Management at American Airlines," Interfaces, INFORMS, vol. 22(1), pages 8-31, February.
    3. Guillermo Gallego & Richard Ratliff & Sergey Shebalov, 2015. "A General Attraction Model and Sales-Based Linear Program for Network Revenue Management Under Customer Choice," Operations Research, INFORMS, vol. 63(1), pages 212-232, February.
    4. Wang, Xiubin & Meng, Qiang, 2008. "Continuous-time dynamic network yield management with demand driven dispatch in the airline industry," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 44(6), pages 1052-1073, November.
    5. Renwick E. Curry, 1990. "Optimal Airline Seat Allocation with Fare Classes Nested by Origins and Destinations," Transportation Science, INFORMS, vol. 24(3), pages 193-204, August.
    6. Guillermo Gallego & Ming Hu, 2014. "Dynamic Pricing of Perishable Assets Under Competition," Management Science, INFORMS, vol. 60(5), pages 1241-1259, May.
    7. M. K. Geraghty & Ernest Johnson, 1997. "Revenue Management Saves National Car Rental," Interfaces, INFORMS, vol. 27(1), pages 107-127, February.
    8. William J. Carroll & Richard C. Grimes, 1995. "Evolutionary Change in Product Management: Experiences in the Car Rental Industry," Interfaces, INFORMS, vol. 25(5), pages 84-104, October.
    9. Matthew E. Berge & Craig A. Hopperstad, 1993. "Demand Driven Dispatch: A Method for Dynamic Aircraft Capacity Assignment, Models and Algorithms," Operations Research, INFORMS, vol. 41(1), pages 153-168, February.
    10. Kahn, Alfred E, 1988. "Surprises of Airline Deregulation," American Economic Review, American Economic Association, vol. 78(2), pages 316-322, May.
    11. Barry C. Smith & Ross Darrow & John Elieson & Dirk Guenther & B. Venkateshwara Rao & Faker Zouaoui, 2007. "Travelocity Becomes a Travel Retailer," Interfaces, INFORMS, vol. 37(1), pages 68-81, February.
    12. Peter P. Belobaba, 1989. "OR Practice—Application of a Probabilistic Decision Model to Airline Seat Inventory Control," Operations Research, INFORMS, vol. 37(2), pages 183-197, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. B. Vinod, 2021. "Advances in revenue management: the last frontier," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(1), pages 15-20, February.
    2. Tianhua Zhang & Juliang Zhang & Fu Zhao & Yihong Ru & John W. Sutherland, 2020. "Allocating resources for a restaurant that serves regular and group-buying customers," Electronic Commerce Research, Springer, vol. 20(4), pages 883-913, December.
    3. Alderighi, Marco & Nava, Consuelo R. & Calabrese, Matteo & Christille, Jean-Marc & Salvemini, Chiara B., 2022. "Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com," Journal of Business Research, Elsevier, vol. 145(C), pages 769-783.
    4. Marketa Kubickova, 2022. "Revenue management in manufacturing: systematic review of literature," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 147-152, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey I. McGill & Garrett J. van Ryzin, 1999. "Revenue Management: Research Overview and Prospects," Transportation Science, INFORMS, vol. 33(2), pages 233-256, May.
    2. Barut, M. & Sridharan, V, 2004. "Design and evaluation of a dynamic capacity apportionment procedure," European Journal of Operational Research, Elsevier, vol. 155(1), pages 112-133, May.
    3. Wang, Xiubin & Regan, Amelia, 2006. "Dynamic yield management when aircraft assignments are subject to swap," Transportation Research Part B: Methodological, Elsevier, vol. 40(7), pages 563-576, August.
    4. Gönsch, Jochen, 2017. "A survey on risk-averse and robust revenue management," European Journal of Operational Research, Elsevier, vol. 263(2), pages 337-348.
    5. Dai Yao & Chuang Tang & Junhong Chu, 2023. "A Dynamic Model of Owner Acceptance in Peer-to-Peer Sharing Markets," Marketing Science, INFORMS, vol. 42(1), pages 166-188, January.
    6. Syed Asif Raza & Rafi Ashrafi & Ali Akgunduz, 2020. "A bibliometric analysis of revenue management in airline industry," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 19(6), pages 436-465, December.
    7. Gabriel Bitran & René Caldentey, 2003. "An Overview of Pricing Models for Revenue Management," Manufacturing & Service Operations Management, INFORMS, vol. 5(3), pages 203-229, August.
    8. Chatwin, Richard E., 2000. "Optimal dynamic pricing of perishable products with stochastic demand and a finite set of prices," European Journal of Operational Research, Elsevier, vol. 125(1), pages 149-174, August.
    9. Feng, Youyi & Xiao, Baichun, 2006. "A continuous-time seat control model for single-leg flights with no-shows and optimal overbooking upper bound," European Journal of Operational Research, Elsevier, vol. 174(2), pages 1298-1316, October.
    10. Benjamin Marcus & Chris K. Anderson, 2006. "Online Low-Price Guarantees---A Real Options Analysis," Operations Research, INFORMS, vol. 54(6), pages 1041-1050, December.
    11. Garrett van Ryzin & Gustavo Vulcano, 2008. "Simulation-Based Optimization of Virtual Nesting Controls for Network Revenue Management," Operations Research, INFORMS, vol. 56(4), pages 865-880, August.
    12. Richard Metters & Carrie Queenan & Mark Ferguson & Laura Harrison & Jon Higbie & Stan Ward & Bruce Barfield & Tammy Farley & H. Ahmet Kuyumcu & Amar Duggasani, 2008. "The “Killer Application” of Revenue Management: Harrah's Cherokee Casino & Hotel," Interfaces, INFORMS, vol. 38(3), pages 161-175, June.
    13. Youyi Feng & Baichun Xiao, 2000. "A Continuous-Time Yield Management Model with Multiple Prices and Reversible Price Changes," Management Science, INFORMS, vol. 46(5), pages 644-657, May.
    14. Heng Du & Tiaojun Xiao, 2019. "Pricing Strategies for Competing Adaptive Retailers Facing Complex Consumer Behavior: Agent-based Model," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1909-1939, November.
    15. Kavitha Balaiyan & R. K. Amit & Atul Kumar Malik & Xiaodong Luo & Amit Agarwal, 2019. "Joint forecasting for airline pricing and revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(6), pages 465-482, December.
    16. Yingjie Lan & Michael O. Ball & Itir Z. Karaesmen, 2011. "Regret in Overbooking and Fare-Class Allocation for Single Leg," Manufacturing & Service Operations Management, INFORMS, vol. 13(2), pages 194-208, December.
    17. J Pinder, 2005. "Using revenue management to improve pricing and capacity management in programme management," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 75-87, January.
    18. Cynthia Barnhart & Peter Belobaba & Amedeo R. Odoni, 2003. "Applications of Operations Research in the Air Transport Industry," Transportation Science, INFORMS, vol. 37(4), pages 368-391, November.
    19. Guillermo Gallego & S. G. Kou & Robert Phillips, 2008. "Revenue Management of Callable Products," Management Science, INFORMS, vol. 54(3), pages 550-564, March.
    20. Peter C. Bell & Chris K. Anderson, 2002. "In Search of Strategic Operations Research/Management Science," Interfaces, INFORMS, vol. 32(2), pages 28-40, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:15:y:2016:i:3:d:10.1057_rpm.2016.15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.