The Study, Based On Revenue Management, Network Space Rental Pricing Strategy

With the development of information technology especially the Internet, cyberspace rental saw a booming development in recent years. It is accepted by various enterprises and persons. However, the ongoing growth among Internet Service Provider (ISP) decreases their profit, they need a scientific way to solve the problem and manage their business urgently. Revenue management is one of ways for them. Revenue management is the technology on allocating requirements and supply. It is true that making correct revenue management scheme can increase the profit of cyberspace products. The paper takes a research in revenue management theory and makes implementation in cyberspace rental.First the paper introduces the cyberspace rental features and the cost composition. Then the paper has a deep research in the items which affect the cyberspace price and requirement, concludes some primary factors and their functions in ISP's product pricing.Cyberspace is one of classical perishable hi-tech products. With its rental features revenue management is used in cyberspace rental to price the products, allocate capacity, convert the price in sell and optimize the storing. Later the paper builds the math model and gives the simulation based on revenue management. The model is analyzed and discussed and draw a series of conclusions, which are helpful for ISP.When the customers launched rental action, ISP should adjust the cyberspace products allocation according to the market. The paper uses the optimize model, generates the random array to simulate the requirement of the product, adjusts the cyberspace products dynamically and gets more reasonable requirement and price for ISP. Thus it decreases the vacancy rate of the product and maximizes the profit for the ISP. Last the paper shows that the optimize composition of the cyberspace products can improve revenue for ISP.