Yield management is a pricing strategy employed by businesses to optimize revenue from perishable resources, such as hotel rooms, airline seats, or rental cars. The goal is to maximize revenue by selling the right product to the right customer at the right price and time. This is achieved by dynamically adjusting prices based on factors like demand, customer segments, and market conditions.
By utilizing data analysis and forecasting techniques, businesses can identify periods of high and low demand and adjust prices accordingly. This allows them to capitalize on peak demand by charging higher prices, while also attracting customers during off-peak periods with lower prices. Yield management enables businesses to achieve higher profitability and better resource utilization, ultimately driving revenue growth in competitive industries.