Correspondence: Tobias von Martens, Dresden University of Technology, Faculty of Business and Economics, Department of Business Informatics, Dresden 01062, Germany

¹is a research assistant in the Department of Business Informatics at the Dresden University of Technology. His research deals with business intelligence and revenue management, particularly the integration of customer relationship management and revenue management, as well as the design of appropriate information systems. He received a PhD for his dissertation on customer-value-based revenue management in service industries.

²is Professor in the Department of Business Informatics at the Dresden University of Technology. His major research interests cover applied mathematics, business intelligence and revenue management. He deals particularly with the design and application of information systems for decision support, from both infrastructural and methodological perspectives.

Received 23 January 2009; Revised 23 January 2009; Published online 10 April 2009.

Abstract

This paper presents a research approach to revenue management based on customer value. Through an integration of transaction-focused capacity control and customer relationship management, customer-value-based revenue management aims at both utilising capacity efficiently and establishing profitable customer relationships. Therefore, customer value is considered when controlling the availability or price of booking classes. The strategic, tactical, and operational activities of customer-value-based revenue management are examined. Simulation studies are used to illustrate the benefits of the approach, compared to transaction-based revenue management. Finally, some concluding remarks are made and the outlook for future research is considered.