Unleashing the power of yield management in the Internet era: Opportunities and challenges

Howard Marmorstein, Jeanne Rossomme, Dan Sarel

Research output: Contribution to journalReview article

9 Scopus citations

Abstract

The profitability of many firms hinges upon their ability to extract the maximum amount of revenue from a fixed quantity of perishable goods and/or services. Yet most firms in this situation have not invested in yield management systems to address this dilemma. This article explains why minimal use of yield management techniques may have been appropriate in the pre-Internet era. It then explains the major changes to the marketing landscape fostered by the Internet that enable the effective practice of yield management. There are multiple yield management approaches that have potential to increase profitability significantly. The article highlights the most important factors for managers to consider when re-assessing the viability of yield management systems at their firms.

Original languageEnglish (US)
Pages (from-to)147-167
Number of pages21
JournalCalifornia Management Review
Volume45
Issue number3
DOIs
StatePublished - Jan 1 2003
Externally publishedYes

ASJC Scopus subject areas

  • Strategy and Management

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