Umit Cholak
       Director of Application Development, Sabre

            "Airline Revenue Management Overview"

Yield Management concepts are applicable and beneficial when you have
limited and perishable capacity - seats on an airplane, advertising
time on TV,  hotel rooms, communication bandwidth, etc.
Revenue Management searches for an answer for this question: How
many units of inventory to sell, to whom and when.

The advent of the digital economy is making Yield Management and
dynamic pricing-type questions ever more important. One reason is
that communication with customers is so much better thanks to
e-mail and the Web. These technologies  create the opportunity to
change prices globally and instantly at little or no cost. At the same
time, they facilitate rapid customer responses to price changes and
quick response to that feedback. This is true not only for B2C e-commerce,
but also for B2B. For example, yield management systems are now being
integrated with core business processes by online leaders in last-minute
travel deals, natural gas trading, tickets and other industries.

Dynamic pricing and yield management are destined to play a crucial
role in online auctions and e-markets, presently the most explosively
expanding part of e-business. Business processes incorporating these ideas
can be designed properly only with the help of analytical methods.