Rate fences. The purpose of rate fences is
to shift demand from busy times to slow
periods, to reward regular and reliable customers,
and to schedule the highest-margin
business at the busiest times. If a spa charges
different prices for essentially the same
treatment, it must develop logical conditions
associated with those prices (Dolan and
Simon 1997). For example, someone who
has a treatment on a Saturday afternoon may
pay a higher price than someone who
receives the same treatment on a Tuesday
morning, or a treatment in a room overlooking
the ocean may cost more than a treatment
in a room without a view. Rate-fence
conditions such as these are essential for revenue
management to be successful