INFORMS News: Eight share Impact Prize for contributions to revenue management

Michael Fry (far left) and INFORMS President Ed Kaplan (far right) congratulate Impact Prize recipients Garrett van Ryzin, Barry C. Smith, Andrew Boyd, Robert Phillips and Guillermo Gallego.

Michael Fry (far left) and INFORMS President Ed Kaplan (far right) congratulate Impact Prize recipients Garrett van Ryzin, Barry C. Smith, Andrew Boyd, Robert Phillips and Guillermo Gallego.

The 2016 INFORMS Impact Prize was awarded to Peter Belobaba, E. Andrew Boyd, Tom Cook, Guillermo Gallego, Robert Phillips, Barry C. Smith, Kalyan Talluri and Garrett van Ryzin for their pivotal role in the creation and widespread adoption of revenue management. The prize, sponsored by Princeton Consultants, was presented at the INFORMS Annual Meeting in Nashville, Tenn., by committee chair Michael Fry.

Awarded every other year, the INFORMS Impact Prize is intended to recognize contributions that have had a broad impact on the field of operations research.

The 2016 citation read in part:

Revenue management is the theory and practice of dynamically managing the price and availability of a portfolio of products or services to maximize profitability. Revenue management was famously first developed to enable airlines to manage the prices and availability of their seat inventory following deregulation in 1978. During the 1980s it spread from the airlines to other capacity-constrained service industries such as hotels, rental cars and cruise lines. From the 1990s through today it has become a mainstream business practice across a wide range of industries including not only airlines and hotels, but also freight transportation, media, retailing, entertainment, consumer finance and manufacturing. As the Internet and the information economy has grown, revenue management has become even more critical to many businesses including Amazon, Airbnb, Google, Microsoft and Uber.

From its earliest days, the field of revenue management has been characterized by an active interchange between industry and academia. Revenue management has proven to be a deep and enduring topic for research. There are two specialty journals devoted to the field of revenue management, as well as a Pricing and Revenue Management Section of INFORMS and an annual INFORMS Revenue Management and Pricing Conference. Furthermore, academic research has resulted in approaches and algorithms that are routinely used to improve revenue management systems used in industry that deliver additional revenues to companies while enabling access of scarce resources to customers.