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. © 1995.