Revenue management model for Internet access service

The concept of revenue management has been used widely in the hotel and air transportation industries, and considered as a good system for managing a perishable asset. Recently, its application area is being increasingly expanded to service industries such as the travel, the railway, the Internet and the sport industries. Internet business can be classified into several groups according to the characteristics of the individual business. One of these groups is Internet Access Service business which connects users to the Internet. In this paper, since Internet Access Services (IAS) business has a similar property to the service industry, we will apply a revenue management concept to it. With some modification of existing model developed by Subramanian et al. for airlines, we suggest the revenue management model being applied to IAS business. Computational experiment shows that the increase of the revenue is up to 7% by applying our model. It means our model has a potential to manage IAS business effectively.