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Yield Management


Yield management involves strategic control of inventory to sell the right product to the right customer at the right time for the right price. While it has similarities with revenue management, it focuses on the selling price and volume of sales, so that it can achieve the best possible results.

The notion behind yield management is that certain resources can be sold in a different price, based on the season, level of demand and other external factors. Based on those variables, the same room can be sold to different customers at a completely different price. Using data- driven methods, hotels make sure to sell their rooms at the best possible price so they can achieve the maximized financial outcome

How do you calculate Yield Management?

The formula to calculate Yield Management:

Revenue Achieved / Maximum Potential Revenue