What is Yield Management ?

 

What is YIELD Management ?

Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, time-limited resource. In simple terms, yield management is a strategy based on selling to the right customer, at the right time, for the right price.The basic concept behind yield management is that certain fixed, time-limited resources, such as hotel rooms, can be sold for different prices, based on the time of year, the level of demand, the number of rooms already sold and a wide range of external factors besides.Yield management allows hospitality businesses to focus on optimising the pricing and selling strategy of their single most important resource – the rooms they have available. This allows hotel owners, for example, to get the basics of their business right, by maximising revenue from rooms alone.

Yield Management & Revenue Management : Within hotel management, yield management and revenue management are two of the most useful tools available to managers, allowing them to maximise the amount of money they make from guests. Although the two concepts are closely linked and share a lot of similarities, there are some important differences too.

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