Charlie manages a Holiday Inn. He knows from experience that last-minute customers will call after 9 p.m. each evening looking for a room and asking the price. Charlie has empowered his staff to offer discounts when the hotel is largely vacant, and to quote the standard price when the hotel is close to full. Charlie knows his service is ________, meaning that if no one stays in the room, it generates no revenue that evening.

While not imperishable, services can be thought of as perishable. A perishable service is simply one that is transient. Such a service is best used right away when it is created. The service, unlike products, cannot be saved for later use.

Transportation by planes, auto maintenance, entertainment at theatres, and manicures are examples of perishable services. If a person buys a plane ticket for a certain day, but then gets sick and can't fly, the ticket expires. It is challenging to maintain a balance between supply and demand when a service is perishable.

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