Yield management
Yield management is a pricing strategy used by businesses to maximize their revenue by adjusting prices based on demand. This strategy is commonly used in industries such as airlines, hotels, and rental cars.
The goal of yield management is to sell the right product to the right customer at the right price and at the right time. By analyzing demand patterns, businesses can set prices dynamically to ensure that they are maximizing their revenue potential.
For example, airlines use yield management to adjust ticket prices based on factors such as time until departure, time of day, and day of the week. By pricing tickets higher for peak travel times and lower for off-peak times, airlines are able to maximize their revenue.
Another example is hotels, which may offer discounts for booking in advance or for staying during the week when demand is lower. By adjusting prices based on demand, hotels can ensure that their rooms are filled at the highest possible rates.
Overall, yield management is a powerful tool for businesses to optimize their pricing strategy and increase revenue.
- Dynamic pricing based on demand
- Maximizing revenue potential
- Used in industries such as airlines, hotels, and rental cars
For more information on yield management, you can visit Wikipedia.