Airline Revenue Management
Airline Revenue Management (ARM) is a business practice that aims to optimize income from airline operations. It involves the use of predictive analytics, price sensitivity, and customer segmentation to sell the right product to the right customer at the right time for the right price. The goal is to maximize revenue by accurately forecasting passenger demand and adjusting seat inventory and prices accordingly. ARM is a complex process that requires a deep understanding of the airline industry, including market trends, competitive landscape, and customer behavior. It also involves strategic decision-making, such as determining the optimal mix of fare products, managing overbooking, and allocating capacity to various markets. ARM is crucial in the aviation industry due to the perishable nature of airline seats, high operational costs, and intense competition. It helps airlines to remain profitable in a challenging business environment.
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