Revenue Management

Revenue management aims to optimize pricing and resource allocation to maximize revenue, particularly in industries with limited capacity like airlines and hotels. Current research emphasizes data-driven approaches, employing machine learning algorithms (including neural networks and posterior sampling) to handle volatile and unpredictable demand, often without relying on traditional forecasting methods. This focus on robust, adaptable models is crucial for improving revenue generation across various sectors, particularly in the face of external shocks and limited historical data, and is leading to more efficient and effective revenue management strategies.