Yield Management
Over a million managers and consultants are working together on management issues via 12manage each month...
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Yield Management |
Over a million managers and consultants are working together on management issues via 12manage each month... |
Description of Yield Management. Explanation. |
Definition Yield Management. Description.
Yield Management is the practice of pricing to maximize the amount of revenue received per unit sold. It should be seen as the process of allocating the right type of capacity to the right kind of customer at the right price as to maximize revenue or yield.
It is usually associated with the pricing practices of airlines,
hotels, transportation, and other sellers of “perishable" products. That is,
goods that become unsellable at a point in time (such as just after a flight
takes off). With an advance forecast of demand and pricing flexibility, buyers
will self-sort based on their price sensitivity (using more power in off-peak
hours or going to the theatre mid-week), their demand sensitivity (must have
the higher cost early morning flight or must go to the Saturday night opera)
or their time of purchase (usually paying a premium for the luxury of booking
late). Forum Comment on this PageCompare with: Capacity Management | Value Engineering |
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End of description Yield Management. An explanation. |
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