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. That’s certainly the case at Opargo, where yield management is an essential element of our 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.

Read the White Paper (PDF)

Posted in: Optimization