What are some of the Effects of Information Technology on Revenue Management?
This paper examines the effect of Information Technology on the Revenue Management of any organization.
The concept of revenue management was recognized recently as a result of variable and prejudiced pricing arrangements presented by numerous companies to their consumers. Revenue management relates to the systematic details that forecast the conduct of the consumers at the micro level and enhance the prices and convenience of products to the customers hence increasing the general revenue for the company.
Revenue management refers to the process of optimizing the income of a business by applying data-driven strategies to pricing, inventory, and distribution. It helps businesses to forecast demand, segment customers, and adjust prices and availability according to market conditions. Revenue management in an organization is known to increase profitability, customer satisfaction, and competitive advantage for businesses in various industries, such as hospitality, airlines, retail, and entertainment.
The intention of developing revenue management methods is to provide an adequate product or service to a suitable consumer at a favorable price. Revenue management is founded on considering the customer’s insight into the significance that the manufactured goods would deliver and align the accessibility, placement, and value according to that observation.
IT has a significant impact on Revenue Management by providing data, tools, and platforms that enable businesses to analyze, forecast, and optimize demand and supply. This results in increased profitability for businesses and improved customer experience and satisfaction for customers. IT is therefore a key enabler for RM in the modern business environment.
Citation Here
APA
Citation Here
MLA
Citation Here
CHICAGO
Citation Here
What are some of the Effects of Information Technology on Revenue Management? a Case Study
Key Learning Outcomes
- Understand the general meaning of revenue management
- Understand the effects of Information Technology on Revenue Management in an organization
- Apply Information Technology to real-life organizations
1.0 INTRODUCTION
Currently, Information technology has transformed the way businesses operate and manage their revenues. Revenue management refers to the process of maximizing the profitability of a firm by improving the pricing and allocation of its products or services. Information Technology enables Revenue Management by providing data, tools, and platforms that facilitate the analysis, forecasting, and optimization of demand and supply. In this paper, we will discuss some of the effects of Information Technology on Revenue Management and how they benefit both businesses and customers.
Information technology has got a number of effects on revenue management in organizations among which include;
Increased availability and accessibility of data. Information Technology allows businesses to collect, store, and process large amounts of data from various sources, such as online transactions, social media, loyalty programs, and customer feedback. This enables them to segment their customers based on various conditions, such as demographics, location, purchase history, and loyalty status. By doing so, businesses can modify their pricing and offer to different customer segments and capture more value from each segment.
Enhanced ability to forecast demand and optimize supply due to Information technology. Demand forecasting is the process of estimating the future demand for a product or service based on historical data and market trends. Supply optimization is the process of adjusting the availability and capacity of a product or service to match the forecasted demand. IT provides sophisticated algorithms and models that help businesses forecast demand more accurately and dynamically. For example, IT can help hotels to predict the occupancy rate and adjust their room rates accordingly. IT also provides platforms and systems that help businesses to optimize their supply more efficiently and flexibly. For example, IT can help airlines to manage their seat inventory and allocate seats to different fare classes.
Improved customer experience and satisfaction. Customer experience and satisfaction are important factors that influence customer loyalty and retention. IT enables businesses to offer more personalized and customized products or services to their customers based on their data and preferences. For example, IT can help online retailers to recommend products or services that match the customer's needs and interests. IT also enables businesses to communicate with their customers more effectively and conveniently through various channels, such as email, SMS, chatbots, and social media. For example, IT can help restaurants to send reminders and confirmations to their customers who have made reservations. By doing so, businesses can enhance their customer relationship and loyalty.
Cancel anytime…right from your account dashboard
NOT YET READY TO SUBSCRIBE? Try our other options below
Get a personalized on-demand assignment fast **
Purchase This Assignment On Demand
100% original custom written assignment
Zero plagiarism (checked via Copyscape)
Harvard/APA/AMA referencing
2250 words-(9 pages)
Price: £ 91.13
Services We are Offering
We are more than a free study and revision tool.
We also provide
on demand research and custom writing services.
Make writing your assignment paper as easy as 123!
123 Writing is the #1 exam revision and assignment study platform in the UK.
Get unlimited access to answered student essays, assignments, past exam questions and sample coursework written by qualified academic writers & tutors.
Our Standard subscription typically retails for £299.88 a year.
Today, you can join at 80% discount.
Here’s a full breakdown of everything you get as a Standard or Premium subscriber...
» Get access to our database of more than 5,770 answered premium strategy case studies
Get unlimited access to a robust database of premium business strategy case studies including more than 5,770 fully answered sample strategy frameworks and tools such as pestle, value chain, value matrix, porters five forces, Ansoff’s matrix, etc., authoritatively written and tailored for student revision, assignment preparation and transformative business research. Our strategy case studies are especially suited for university students wishing to apply strategic frameworks to real-world situations, company cases or simulations. All our strategy case studies come with teaching notes and learning outcomes, making them effective as coursework revision, and essay study help tools.
» Free access to past exam & assignment answers
Revise and prepare for exams and coursework with our fully answered exam notes and sample assignment papers. Furthermore, get quick on-demand answers to past exam question and assignment questions from our writers. Exam answer notes come with personalized lesson plans, and detailed study notes complete with detailed explanations of each answer, for maximum exam revision and assignment preparation. This tool is perfect for readers struggling with exam preparation & assignment study.
» Get extra assignment related help from our writers & tutors
Achieve high grades with a little extra assignment related support. Get extra help with your essays, assignments and general coursework, from our knowledgeable writers and tutors who will provide extra assistance when required for all academic related tasks including proofreading, grammar editing & correction, citations, referencing, etc. at no extra cost for standard and premium subscribers. All our standard and premium subscribers receive free proofreading services, which will include a check for punctuation, grammar, sentence formation, typographical errors, formatting, errors and other consistency issues (broadly).
» Get free assignment & essay writing help worth up to 7K words
Commission an on-demand essay, or assignment title from our knowledgeable writers and tutors on any subject matter. Get up to 7,000* words in on-demand custom assignment help from our writers who can assist with difficult topic in classical business literature. (* 7,000 free word credit exclusive to premium members).
» Fast & speedy answers to on-demand case solutions & assignment questions
Make use of your available free word credit (up to *7,000words) to commission on-demand custom case solutions, case study assignments and receive fast & speedy personalised answers. Receive timely and fast plagiarism-free answers to assignment questions or case solutions in as little as 1-2 business working days. Topics include Strategic Management, Marketing, Business Management, Economics, Operations Management, Organization Studies, International Business & Management, Human Resource Management and more. (* Exclusive to premium members).
» Get exclusive Q&A sessions with our subject matter writers
Ask our qualified, vetted and knowledgeable writers up to *12 essay, assignment and coursework related questions annually and receive accurate, clear, and detailed answers including step-by-step explanations briefs that are easy to follow. (*Exclusive to premium members).
» Free access to test bank questions & answers, study notes and practice quizzes
Test your knowledge on any subject with our quick quizzes and test banks for maximum retention after revision and studying. Test Bank contains questions in a variety of formats including multiple choice, true/false, short answer, and essay questions.
» Free access to video tutorials & study packs
Get free access to exclusive video tutorials to common subject topics. Our subject matter video tutorials, study notes and study packs have been created to help students learn and understand basic course module materials, as well as prepare students for their coursework assignment questions, essays and exams. Our video tutorials, study notes and study packs can be organized by topic, textbook or Question &Answer.
» Access to textbook chapter reviews and answer solutions
Get access to chapter reviews of popular business books, broken down in easy-to-understand simple concepts with simplified English. If English is not your first language, this service will make revising for essay assignments and exams as easy as 123 (Exclusive to premium members).
