Revenue management systems (RMS):
A) consist of standard and static methods to forecast demand.
B) rely solely on overbooking.
C) are cost minimization models.
D) maximize the revenue generated by a perishable asset.

Question

Quizplus · Accepted Answer

Revenue management systems (RMS) are designed to maximize the revenue generated by a perishable asset, such as hotel rooms, airline seats, or rental cars. These systems use complex algorithms and real-time data analysis to identify demand patterns and adjust pricing accordingly, in order to optimize revenue without sacrificing occupancy or customer satisfaction. While overbooking may be a component of RMS, it is not the sole or primary strategy, and cost minimization is not the goal.

Revenue Management Systems (RMS)