I have frequently said that travel is no more than information at the point of sale. When a customer buys travel it is just information on a computer. It does not yet exist. Interestingly, the appeal of the product can grow or shrink depending on the date it will actually be consumed. A room night in Sydney with a view of the New Year’s Eve celebrations has far more appeal than the same room out of season in August.
I have recently been exposed to revenue management. At the beginning of the month, I attended a Revenue Management and Pricing International (RMAPI) event. Watching the presentations and listening to the speakers, I was astonished at how mathematical RM is.