Book Discription

NB. This paper written by Sheryl E. Kimes and Leo M. Renaghan

Space management in the context of Revenue Management has received limited attention in the literature, but has the potential to help companies
achieve the full revenue potential of their capacity. The chapter will first give an overview of the three strategic levers, and then discuss how the interplay of space and time affects how companies position themselves. It will then delve into the role of space and present methods in which companies can effectively use space within their Revenue Management strategy.

The management of space is equally important to the management of both time and price for companies using or contemplating the use of Revenue
Management. Managers must understand the interplay of space, time and price in the development and execution of a successful Revenue Management strategy. Since the primary product that companies using Revenue Management sell is space for a certain amount of time, it is essential that they adopt a strategic view of their space. Companies need to manage both the configuration of their space and how they design the ambient elements of that space. Space is a scarce resource, and if not carefully managed and controlled, companies may never achieve their revenue potential regardless of how well they manage price and time.