Hotel Revenue Glossary · Strategy

Yield Management

The practice of adjusting prices and inventory availability in real time to maximize revenue from a perishable, capacity-constrained resource. Yield management originated in the airline industry and is the precursor to modern hotel revenue management.

Why it matters: While the term "revenue management" has largely replaced "yield management" in hotels, understanding the yield concept is important. It emphasizes the core principle: optimize the yield (revenue) from every unit of inventory by pricing dynamically based on demand.

All glossary terms Dynamic Pricing Perishable Inventory BAR (Best Available Rate)