Revenue management is MOST likely to be used in which one of the following situations?
A) a fast-food restaurant with wide demand fluctuations during the day
B) a dental clinic that wants to fill its appointment book
C) a firm with a good counterseasonal product mix
D) a shipping company that can change its fleet size easily
E) an airline attempting to fill "perishable" seats at maximum revenue

Question

Quizplus · Accepted Answer

Revenue management is commonly used in industries where products or services are perishable, have varying levels of demand, and can be sold at different prices to different customers. Airlines have limited capacity on each flight and incur high fixed costs, which makes it crucial for them to fill as many seats as possible at the highest possible price. Thus, revenue management is particularly useful for airlines attempting to maximize revenue by filling "perishable" seats at the maximum possible price.

Revenue Management Is MOST Likely to Be Used in Which