Yield management, also called revenue management, is a broad technique that aims to maximise profits. The concept provides an overview of various benefits for organisations seeking to link their promotional efforts with yield management strategies.
Yield Management Definition
Yield management is a procedure which is used by service organisations to maximise revenue under conditions of fluctuating demand and where the product is perishable (Ross and Johns, 1997). Valls (2009) defines yield management as “the price established paying attention to the different categories from consumers with the aim of being able to maximize the yields”. In other words, it is a “method that helps to sell the correct product to the appropriate consumer, at the suitable moment and price”, allowing it in this way to maximise income (Kimes and Chase, 1998)
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Yield Management References (4 of up to 20) *
- Belobaba, P.P., and Wilson, J.L. (1997) Impacts of Yield Management in Competitive Airline Markets. Journal of Air Transport Management, Vol. 3(1), pp. 3-9.
- Bitran, G.R., and Mondschein, S.V. (1995) An Application of Yield Management to the Hotel Industry Considering Multiple Day Stays. Operations Research, Vol. 43(3), pp. 427-443.
- Boyd, A. (1998) Airline Alliances. OR/MS Today, Vol. 25 (5), pp.28–31.
- Coy, P. (2000) The Power of Smart Pricing. BusinessWeek, 10 April, pp. 160-163.
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