Revenue Management (RM) is the science of increasing revenue by asking the right customer for the right price at the right time. Over the past four decades, revenue management and dynamic pricing have become extremely important. They are widely implemented in many business areas, including the airline industry, hotels, entertainment and online retail. Today, for many companies, implementing RM techniques is a key tool to stay competitive.
In practice, customers are often willing to pay more than the price they actually pay . Therefore, the scientific challenge lies in the development of smart pricing strategies that balance the need to make profit and learn consumer behaviour. Complicating aspects are competition, demand uncertainty, and strategic consumers. At the same time, a lot of historical and online sales data is often available, which creates enormous opportunities for developing effective pricing strategies.
Our research leads to a better understanding of the effectiveness of pricing strategies aimed at boosting the revenue, and to the development of smart, ‘optimal’ pricing strategies. In our research we collaborate with several business parties, including airline companies, hotels, theatres and parking-service providers.
Contact person: Rob van der Mei
Research group: Stochastics (ST)
Research partners: KLM, Park ‘N Fly, Transavia, Theater Bellevue, TNT Express, Arenoe Marketing Intelligence