Revenue management involves managing the shortterm demand for a fixed perishable inventory in order to maximize the revenue potential for an organization. The methodology, originally developed for American Airlines, was first used to determine how many airline flight seats to sell at an early reservation discount fare and how many airline flight seats to sell at a full fare. By making the optimal decision for the number of discountfare seats and the number of fullfare seats on each flight, the airline is able to increase its average number of passengers per flight and maximize the total revenue generated by the combined sale of discountfare and fullfare seats. Today, all major airlines use some form of revenue management.Given the success of revenue management in the airline industry, it was not long before other industries began using this approach. Revenue management systems often include pricing strategies, overbooking policies, shortterm supply decisions, and the management of nonperishable assets. Application areas now include hotels, apartment rentals, car rentals, cruise lines, and golf courses.The development of a revenue man