Revenue Management and E-Tourism: The Past, Present, and Future

Revenue management (RM) is a management philosophy based on systematic information analysis that aims at maximizing profit through effective price and inventory management. It is mainly applied in service businesses with fixed capacities, such as airlines, hotels, spas, etc. RM implies an analytical vision of management that affects the entire organization and is supported not only by scientific (statistics, mathematics, marketing) and technological advances but also by a radical change in traditional management theory. However, current RM is still based on a narrow inventory/price view without considering a key factor: the customer. In this regard, big data-based methods will provide the opportunity for more sophisticated discrimination and customer-based knowledge leading to a customer-centered vision which allows for lasting customer relationships and personalized pricing. Thus, it is necessary to conduct further research that updates theoretical RM concepts and practices that have evolved over time. The objective of this chapter is to offer a current revision of RM literature from both a strategic and a holistic perspective. This approach refers not only to the application of the flywheel model (marketing, sales, and revenue management) but to RM implementation in all income source departments in the hospitality industry. In addition, RM peculiarities in major tourist industries are outlined. Finally, an agenda of future RM research in tourism is proposed.