In a revenue management system, forecasting, allocation, overbooking, and pricing must work in unison if the objective is to:
A) manage a nonperishable asset.
B) meet the future demand of goods and services.
C) determine the single price that needs to be charged to all customers.
D) maximize the revenue generated by a perishable asset.

Question

Quizplus · Accepted Answer

The objective of revenue management system is to maximize the revenue generated by a perishable asset, such as hotel rooms or airline seats. Forecasting helps predict future demand, allocation ensures that the right resources are available at the right time and in the right quantity, overbooking helps to manage the risks associated with cancellations and no-shows, and pricing is used to adjust prices based on demand and supply conditions. When all these elements work together in unison, the goal of maximizing revenue is more likely to be achieved.

In a Revenue Management System, Forecasting, Allocation, Overbooking, and Pricing