Yield management, also known as revenue management, is a strategic approach used by businesses to optimise revenue and profitability by dynamically adjusting prices and inventory based on demand fluctuations, market conditions, and consumer behaviour. This involves analysing data to forecast demand, setting prices accordingly, and allocating resources to maximise revenue from available inventory. In hotels, revenue managers use yield management to set room rates and optimise occupancy levels, usually with a revenue management system. Guest relationship software such as chatlyn adds to overall revenue generation beyond the room rate, for example with upgrades and extras offered to guests on WhatsApp before and during their stay.
What is Yield Management?
Yield management, also known as revenue management, is a strategic approach used by businesses to optimise revenue and profitability by dynamically adjusting prices and inventory based on demand fluctuations, market conditions, and consumer behaviour.
How does Yield Management work?
Yield management involves analysing data to forecast demand, setting prices accordingly, and allocating resources to maximise revenue from available inventory. This includes adjusting prices based on factors such as seasonality, booking trends, competitor pricing, and customer segments.
