Yield management is a variable pricing strategy, frequently used in the air travel and hospitality industry to take full advantage of income from a unpreserved and fixed account (e.g. hotel rooms, airline seats, etc.).
Usually speaking, pleasing into a yield management strategy suggests proposing different values to different clients for the same merchandise (at different times).
That’s because different consumers are normally eager to pay a different price for the same product in these detailed industries based on multiple criteria, such as time of year, level of demand, weather conditions, etc.
As you build your own hotel revenue management tactic, it’s significant to think about retailing the right room to the right client at the best instant in time and for the highest price conceivable so as to augment your hotel’s revenue and productivity.
On a basic level, being a good revenue manager is about your competence to find an best price zone called balance where you can maximize your revenue.
So, a reliable way to advance your yield managing skills is to work on finding the maximum price you can sell your rooms for while keeping a high number of clients booked at your hotel. Once you find this optimal price zone, you are already working at maximum productivity.