when focused on controlling inventory, revenue management is mainly concerned with how best to price or allocate capacity. first, a company can discount products in order to increase volume. by lowering prices on products, a company can overcome weak demand and gain market share, which ultimately increases revenue. on the other hand, in situations where demand is strong for a product but the threat of cancellations looms (e.g. hotel rooms or airline seats), firms often overbook in order to maximize revenue from full capacity. overbooking's focus is increasing the total volume of sales in the presence of cancellations rather than optimizing customer mix.