Term

revenue management

Daniel MarkFounder & Editor, Aviatopia
Published Mar 1, 2026Updated Mar 1, 20261 min read

The practice of dynamically adjusting fares and inventory to maximize total revenue — using demand forecasting, booking curves, and fare class controls.

aviation-glossary

Quick Facts

Type
Airline Strategy
Definition
The practice of dynamically adjusting fares and inventory to maximize total r...
Used By
Airlines

Definition#

Revenue management (also called yield management) is the strategic control of inventory and pricing to sell the right seat to the right passenger at the right price. It uses demand forecasting, fare class controls, and overbooking models.

Why It Matters Operationally#

Revenue management can increase airline revenue by 5–15% without adding capacity. It optimizes the trade-off between filling seats (load factor) and fare levels (yield).

See Also

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