We all like to keep a track of our expenditures, don’t we? A similar thing happens in industries like hospitality. They have something called high fixed costs; i.e. the money they have to spend whatever might be the situation. But, they also have what we call perishable inventory. This means that they cannot store supplies in their vault that will be used up 1 year later. When you take care of these factors and allocate budget to be spent, this is called revenue management. This is used when you have to optimise the results obtained from financial sources. What constitutes as revenue management? It is when you sell the right product to the right client on right time at the right price. Let us take the example of hotels, shall we? Perfect.
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