Why would there typically not be a hurdle revenue?

A hurdle revenue is typically not present when the transient demand does not exceed the available transient supply because, in such situations, the market does not experience excess demand that could justify setting a revenue threshold that needs to be met before additional profits can be recognized. When demand and supply are in balance, businesses can sell at existing rates without needing to establish a minimum revenue requirement to motivate sales.

In contrast, if transient demand exceeded supply, businesses might implement a hurdle revenue model to maximize profits during peak times, ensuring they capture additional revenue above a certain level before incurring extra costs or expanding capacity. In scenarios where demand is lower than supply, there would be little need for such a model, as pricing is generally stable and sufficient to cover costs without the additional complexity of a hurdle.