Chapter 2 focuses on the components of Revenue Management, continuing the theme of evolution into a multifaceted tool for deci sion making. The contributors explore how adaptation of the key elements of a business’ marketing approach, that is, customer infor mation, market segmentation and of course pricing, combined with key performance indi cators such as occupancy rates, RevPar (revenue per available units), optimisation levers, over booking policy, quota restrictions and distribu tion, play such an integral role in Revenue Management decision making. The inclusion of the French high-speed train service iDTGV ©2014 Macmillan Publishers Ltd. 1476-6930 Journal of Revenue and Pricing Management Vol. 13, 1, 74–76 www.palgrave-journals.com/rpm/ Book Review and Best Western Hotels’ cases assist the reader to better comprehend the components of Revenue Management and its progression.

Chapter 3 considers the strategic importance placed on the function of revenue managers and the position they hold in the organisation. The Revenue Management function requires a free f low of information across departments to accommodate the decision-making process that occurs at a senior level. The role of the revenue manager is defined as ‘trans-disciplinary’ and the revenue manager is described as having to understand the business dynamic and provide a format for optimising the best return for the business. Using a number examples from indus try (Corsair, Accor and Carlton Hotel, Paris), the consensus is that the revenue manager plays a key role in the organisation, requiring a high degree of expertise, analytical skill and support.

Chapter 4 suggests that the revenue manager should use a four-step approach encompassing data analysis, demand forecasting, revenue optimization and performance monitoring. The early part of the chapter concentrates on how integral data analysis is to the revenue manager’s decision-making process. Using portfolio data graphical analysis as a comparative tool reveals the impact of ‘pick up’ (increases in business) for a specific period that can identify failings or create new opportunities for increasing sales. This leads onto an overview of demand fore casting through use of historical data and aware ness of future events. The latter part of the chapter considers the analysis of data for revenue optimisation. The process implemented within the airline industry shows the complexity of decision making that Revenue Management software systems incorporate. However, the key theme of the chapter is that where an integrated software system is used or not, pricing needs to be determined based on demand and in terms of capacity.

Chapter 5 concludes Part 1 and investigates the implementation of a Revenue Management system that will meet the needs of the organization. The chapter uses examples within the airline and hotel industries to illustrate how Revenue Management systems involve the integration of a number of systems, software and databases. It argues that successful performance, based on Revenue Management systems, not only relies on forecasting and optimization techniques but on the skill, knowledge and expertise of their operatives. In addition, it is proposed that the advancement of real time connectivity tools, developments in software, the integration and the appropriateness of the Revenue Management system to the organization are reasons why businesses opt to lease rather than buy. Ultimately the number of systems, software and databases that are available to the revenue manager in addition to understanding demand are dictated by the size and nature of the business. In turn, these are variables that need to be considered in relation to the Revenue Management system employed by the organization.