Yield management: an overview

Abstract

Yield Management has been succesfully adopted by the airline industry following deregulation in the late 1970's. In an hotel context, yield management—a profit maximization strategy—is concerned with the market sensitive pricing of fixed room capacity relative to specific market characteristics. The concept of yield management is reviewed and the authors present a comprehensive structured operational framework for management in the hospitality industry focusing on 10 key areas. The article concludes with a look at the future of Yield Management and some areas for further research.