b'FOGHORN FOCUS Revenue ManagementMAKE MORE ON EVERY TICKET JOHN BERTELL// CARUSAwhich is constantly misused and misunderstood in ourRevenue management as a discipline was invented by American Air-term industry is revenue management. We see many operators andlines in the late 1970s to enable it to compete with low-cost airlines providers who say they are working with revenue managementand to diversify its pricing to meet the low prices of the competition but without a clear understanding of the base concept of this pricingwithout diluting the total revenue and ticket prices they could charge and inventory model. business travelers.PHOTO: LAUREN KAN / UNSPLASH The primary aim of revenue management is to sell the right product toThe model is based on a structure of creating virtual products from the the right customer at the right time for the right price. The essence ofsame inventoryyour passenger capacityand diversifying the products this discipline is understanding your customers perception of productwith different conditions (or business rules) to be able to charge different value and accurately aligning your product prices, ticket rules, and avail- prices to different customers. This enables you to provide your customers ability with each of your customer segments. with the best price for their particular preferred ticket conditions. FOGHORN 24'