An Indian management specialist is urging developing nations such as Sri Lanka to positively exploit growth opportunities available in the service sector by utilizing Information Technology (IT) as the backbone to bridge the geographical gap with other nations which will ensure long term economic growth for the country.
At a recent seminar titled 'Strategies for Service Organisations', sponsored by the Institute of Chartered Accountants of Sri Lanka (ICASL) in Colombo, senior Indian Professor of Operations Management B. Mahadevan of the Indian Institute of Management, Bangalore stressed that today, even in Sri Lanka, the service sector was the most dominant, by contributing 60 % to the country's Gross Domestic Product.
"As the economy booms, issues related to the service sector should be taken into consideration such as the pricing factor," he was quoted as saying in comments released by the Institute. Citing reasons for his claim, the Professor noted that in the past, pricing was often done on a static basis and not on a dynamic basis. "Firms have to understand that they should price services differently. It is only then will they derive the benefits," he said.
Prof. Mahadevan introduced several pricing methods during the seminar which included different pricing styles, bundle pricing and yield management pricing, which are currently adopted by hotels and airlines.
"Ten years back, hotels adopted a static pricing policy, where tariffs were usually a static rate during peak period. Today this style has changed and the rates keep changing from hour to hour, minute to minute and even the service sector should adopt a similar pricing policy," he noted