Implementing Revenue Management for Travel Agencies

  •  Grace Chan    
  •  Basak Guillet    


The purpose of this descriptive study is to explore revenue management (RM), it may relevant for travel agencies in their business management. In view of the features that this sector shares with traditional revenue management (RM) users such as the airline and hotel industries, travel agencies have the potential to enhance revenue by applying various RM techniques. Both traditional and non-traditional users of RM have benefitted greatly from the use of RM strategies. In particular, revenue per available tour product (RevPATP) is invoked, both in the present modified typology of RM and in developing RM strategies for the travel sector. The study utilized data from in-depth interviews with industry professionals to determine their perceptions of RM and understand their comments about the possibility of RM implementation in travel agencies. The study’s results reveal that travel agencies have limited knowledge of RM, limiting themselves to profit maximization alone. Although the professionals interviewed were aware of the unpredictable nature of the environment in which they operated, most believed that only large travel agencies were capable of applying RM to their operations.

This work is licensed under a Creative Commons Attribution 4.0 License.
  • ISSN(Print): 1925-4725
  • ISSN(Online): 1925-4733
  • Started: 2011
  • Frequency: semiannual

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