Yield Management to the Rescue, The American (Airlines) Way
Yield management isn’t just another cool buzz word you hear thrown around at business strategy meetings. It may be the most important principle that can be used by data and inventory-dependent companies in today’s world of constant change and information overload. In fact, ThinkWell works with multiple clients who use yield management as a fundamental part of their operations strategy.
Former American Airlines chairman and CEO Robert Crandall coined this term and pioneered its implementation in the late 1980s during the make-or-break days following the deregulation of the airline industry. In what he called “the single most important technical development in transportation management since we entered deregulation,” Crandall was able to use yield management strategies to allow companies to sell “the right seats to the right customers at the right price.”
In this white paper, you’ll see how Crandall and American introduced yield management and navigated it to extraordinary success, allowing his company to soar to greater financial heights while also showing other industries with “perishable” inventories how to predict customer demand and optimize revenue.