Revenue management: Resolving potential customer conflicts

Revenue management is a sophisticated form of supply and demand management that helps a firm maximise revenue by balancing pricing and inventory controls. In recent years, an increasing number of firms have recognised the importance of revenue management in their ability to increase sales and profitability. When a firm that is fundamentally customer oriented also embraces revenue management, however, a series of customer conflicts can result and be detrimental to the firm's long-term success. This paper outlines these potential conflicts and explores various marketing and organisational strategies that can be used to resolve such conflicts.