American Airlines, Inc.: Revenue Management

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American Airlines, Inc.: Revenue Management

Category: Case Study

Subcategory: Management

Level: College

Pages: 4

Words: 1100

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American Airlines, Inc.: Revenue Management
Successful revenue management system is the outcome of a process, technology and people that have been efficiently tapped when maximizing revenues. Gauging the effectiveness of the revenue management process during its progress from the origin to a state is arguably very important and guarantees that the process is effectively leading to the success of an organization and adds to the bottom line.
A forward-looking revenue management process for an airline leads to an increase in revenues. Overbooking controls, discount mix controls on fares, departure and destination controls, and group passenger controls can be effective when introduced. A strong case exists for an airline business investing in revenue management, and it is imperative that airlines deserve to appraise the phases of the growth of revenue management from the origin to the steady state.
Issue Identification
The financial growth of any airline company is largely the result of an effective management of its main resource, which are the reservations inventory. The American Airlines with its ticker symbol AMR, from the case study has applied quantitative operations to enhance the management of the company’s reservations inventory. This move greatly led to the growth of the company’s hugely impressive SABRE reservation system.
Yield management entails a wide range of functions, and these incl…

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