Revenue management: Models and methods

Revenue management is the collection of strategies and tactics firms use to scientifically manage demand for their products and services. The practice has grown from its origins in airlines to its status today as a mainstream business practice in a wide range of industry areas, including hospitality, energy, fashion retail, and manufacturing. This article provides an introduction to this increasingly important subfield of operations research, with an emphasis on use of simulation. Some of the contents are based on excerpts from the book The Theory and Practice of Revenue Management (Talluri and van Ryzin 2004a), written by the first two authors of this article.