From yield management to price optimization: Lessons learned

As the disciplines of yield management, revenue management and price optimization gain greater acceptance across industries, mistakes and misunderstandings continue to occur within small and large firms. Frequently, the mistakes are quite basic. This brief article contains seven strategic considerations, ‘lessons learned’ if you will, that are important to keep in mind when designing, developing and implementing a price optimization effort. Although not always easy to apply, they have proven critical for maximizing the financial success of price optimization programs in a wide range of industries.