Revenue management for the capital equipment server industry

Revenue management (RM) has typically been used in consumer-based industries such as airlines and hotels. This paper explains how the same characteristics that are appropriate for those industries apply to the servicing of large capital equipment, such as semiconductor product equipment. Service labour is perishable, can be segmented, sold in advance, has variable demand and high fixed costs with low variable costs. Semiconductor production equipment is used as an example, but this applies to other business-to-business industries that have service labour. Business-to-business markets are a new, largely untapped, area of RM.