ABSTRACT
Revenue management is the practice of obtaining the highest possible revenue in the selling of a service firm’s capacity. Capacity of a service firm, in turn, is the highest possible output in a given time period with a pre-set level of staffing, facilities and equipment. This could be seats on an airplane, concert hall, train or a stadium; employees delivering professional accounting or legal services; the maximum amount of data transmitted through cable; the space available for exhibition or conferences; the rooms in a hotel or cruise ship; employees delivering banking services and the amount of liquidity for loans, the list goes on.
