Revenue Management in Tourism Industry: Similarities, Differences and Strategies

Revenue management has excellent application opportunities and broad development prospect in the tourism industry. We discuss the similarities, differences and strategies among various travel and hospitality industries when applying and implementing revenue management based on the "macro-tourism" philosophy in this paper. These industries involve airlines, hotels, cruises, rental cars, restaurants, golf-courses, tourism scenery area, and tour operators. These differences, affecting an automated revenue management system greatly, should be noted and coped with carefully by operators. Revenue management strategies in all these industries can be summarized in market segmentation, demand. forecasting, inventory control, differential or dynamic pricing, overbooking, duration control, capacity supply management, and visiting route designing.