Revenue Management did what it was designed to do.
Forecasting. Pricing. Capacity. Opportunity cost. An extraordinary achievement. And, as a sufficient representation of the business, a discipline that has become obsolete.
The problem is not that the calculation fails.
It can succeed. And still leave outside the decision a material relationship that affects what the business can create and capture tomorrow. RHM does not discard what RM knows. It changes what the business needs to understand.
FROM THE BOOK · Preface · 1–4, 17Three decisions that seem right.
These examples come from mechanisms examined in the book. Explore what the economic result tells us and what it cannot establish on its own.
A favorable result does not establish that the decision damaged the business. Nor does it establish that every important relationship remained unchanged.
FROM THE BOOK · 1, 9–11, 19–20RHM can keep the same decision.
The purpose is not to contradict Revenue Management every time. It is to recognize when a more complete representation materially changes the decision, and when it does not.
Understand RHM ↗Now see what happens beyond one business.
The overtourism chapter shows why thousands of individually reasonable decisions can belong to a much larger system.
Explore overtourism ↗The idea continues in the book.
The entire method, in its original progression. Five parts. Twenty-six chapters. Start at Chapter 1.