The underlying reason that yield management can be applied to many types of services is the perishability of service capacity. In other words, service capital cannot be saved for future use. (Wouldn’t it be great if the airlines could save all of their empty seats during the year for use during the Thanksgiving and Christmas holiday periods! I Given that capacity in a service operation is perishable. the service manager should try and maximize capacity utilization whenever possible. even if it means offering large discounts to attract customersprovided that the discounted price” exceed the variable cost.