Hotel Revenue Glossary · Metrics

Yield

The actual revenue earned as a percentage of the maximum potential revenue. Yield is calculated by dividing actual room revenue by the theoretical revenue that would result if every available room were sold at rack rate. It captures both occupancy and rate discount effects in a single figure.

Why it matters: Yield provides a single measure of how close you are to capturing your theoretical maximum. A yield of 65% means you are leaving 35% of your potential revenue unrealized through a combination of empty rooms and discounted rates.

All glossary terms Yield Management RevPAR (Revenue Per Available Room) Rack Rate