Principles Of Operations Management
Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter 13, Problem 1ED

Make the case for, and then against, this pricing system. Does the general public seem to accept revenue management? What would happen if you overheard the person in front of you in line getting a better room rate at a Hilton Hotel? How do customers manipulate the airline systems to get better fares?

Expert Solution & Answer
Check Mark
Summary Introduction

Case summary:

In the recent days, airline passengers stand in numerous lines and uses taxiway due to air-traffic problems and lack of open gates. Gripes travelers in the aero plane gets annoyed if they find the person sitting next to them paid lower fare. They were against this pricing system.

To determine: For and against report about the pricing system.

Explanation of Solution

Determine the details about the pricing system and its effect on public:

Revenue management is crucial from the airline’s point of view. Revenue management is the most critical method that can be followed in hotels, universities, and restaurants. The revenue management technique in hotels, restaurants, and universities helps to approach various market segments.

However, from customers’ point of view, it is the sense of unfairness. They would be annoyed if they travel in the same plane that has the people who paid half as much as they paid.

If Person X overheard that the person in front of his line getting had better room rate, it would annoy him. He might think that there is an unfairness of treating its customers. Most of the customers would be against the revenue management technique and mentioned pricing strategy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
How do we prioritize mental well-being and incorporate stress management techniques? What are the obstacles to a balanced Workout plan to ensure comprehensive fitness and how to overcome them?
You ordered 1,000 tons of cocoa beans, which will be delivered to your chocolate manufacturing plant in PA in March next year. The current price of cocoa beans, as of today, is $2,260 per ton. There is an investor company who currently offers two types of risk hedging contracts: -Forward contract: $2,400 per ton at a fixed cost of $30,000. -Futures contract: $2,400 per ton at a cost of $50 per ton (therefore, the up-front cost is 1000 tons * $50 per ton = $50,000) Assume that the price of cocoa beans went down to $2,200 per ton in March 2023. How much would you need to pay for 1,000 tons of cocoa beans under the futures contract?
What are the goals for maintaining focus, tracking progress, and staying motivated on wellness? How do they relate and impact the past and future routine workouts? What are the strengths and weaknesses, and how can we overcome the obstacles that could occur?
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
  • Text book image
    Purchasing and Supply Chain Management
    Operations Management
    ISBN:9781285869681
    Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
    Publisher:Cengage Learning
    Text book image
    MARKETING 2018
    Marketing
    ISBN:9780357033753
    Author:Pride
    Publisher:CENGAGE L
    Text book image
    Marketing
    Marketing
    ISBN:9780357033791
    Author:Pride, William M
    Publisher:South Western Educational Publishing
  • Text book image
    Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY