An overview of revenue management in service industries: an application to car parks

Abstract

Revenue management (RM) is becoming an increasingly important technique in the service sector, particularly in activities involving perishable goods or services which cannot be stored. The integration of RM into businesses results in simultaneity in the production and consumption of services and its aim is to sell each stock unit to the right customer, and at the right moment and price. This paper examines the application of this technique to the management of car parks and proposes a model for its application, as well as a series of problems and their possible solutions.

Keywords:

• revenue management
• service industries
• car park
• perishable stock
• simulation