Revenue management is the practice of
allocating the right space to the right customer
at the right price at the right time
so as to maximize revenue or contribution
margin (Smith, Leimkuhler, and Darrow
1992). The determination of “right” in that
definition entails achieving the most revenue
possible for the spa while at the same
time delivering the greatest value or utility
to the customer. The issue of maximum
utility is particularly important for spas
because of their direct contact with the
guest through the spa experience. Without
the balance of revenue and utility, revenue