Yield Management

Yield Management

Yield Management Jonathan Poland

Yield management is a pricing strategy used by businesses that offer access to fixed-capacity assets, such as airline seats and hotel rooms. The goal of yield management is to maximize revenue by achieving a high utilization rate for these assets, while also charging the highest possible average price. This can be achieved through the use of price discrimination strategies, which offer different prices to customers based on their willingness to pay.

Yield management is a valuable tool for businesses that operate in industries with high fixed costs, such as the airline and hospitality industries. By using data analytics to analyze customer behavior and market conditions, businesses can implement yield management strategies to effectively manage their revenue and maximize their profits.

Some specific examples of yield management include:

  1. An airline offering different prices for the same flight, depending on the time of day, the length of advance notice, or the level of flexibility in the ticket.
  2. A hotel offering different prices for the same room, depending on the season, the day of the week, or the length of stay.
  3. A rental car company offering different prices for the same car, depending on the time of day, the pick-up location, or the length of rental.
  4. A concert venue offering different prices for the same seat, depending on the popularity of the artist, the location of the seat, or the availability of tickets.
  5. A theme park offering different prices for the same ride, depending on the time of day, the day of the week, or the level of demand.
Learn More
Niche Market Examples Jonathan Poland

Niche Market Examples

A niche is a specific group of consumers who have distinct preferences and needs. These groups are often smaller than…

Retail Automation Jonathan Poland

Retail Automation

Retail automation refers to the use of technology to automate and streamline various processes in the retail industry, such as…

Serviceable Market Jonathan Poland

Serviceable Market

Serviceable market is the part of the total addressable market that can actually be reached.

Turnaround Management Jonathan Poland

Turnaround Management

Turnaround management is a specialized form of management that involves developing and implementing strategies and plans to rescue an organization…

Business Assets Jonathan Poland

Business Assets

In business, assets are useful property that are owned by the company. These assets can be divided into three categories:…

Choosing the Right Lobbyist 150 150 Jonathan Poland

Choosing the Right Lobbyist

First, determining whether hiring a lobbyist is right for your company depends on several factors. Consider the following questions to…

Operations Planning Jonathan Poland

Operations Planning

Operations planning involves identifying and implementing strategies and tactics to optimize the core processes and practices that enable a business…

What is a Superior Good? Jonathan Poland

What is a Superior Good?

A superior good is a type of good that tends to see an increase in demand as income levels rise.…

Risk Exposure Jonathan Poland

Risk Exposure

Risk exposure refers to the potential costs that an organization could incur as a result of a particular risk or…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Liquidity Risk Jonathan Poland

Liquidity Risk

Liquidity risk is the risk that a financial institution or company will not be able to meet its financial obligations…

Settlement Risk Jonathan Poland

Settlement Risk

Settlement risk is the risk that a trading counterparty will not deliver a security or asset as agreed upon in…

Brand Metrics Jonathan Poland

Brand Metrics

Brand metrics are used to assess the effectiveness of branding efforts and marketing strategies in terms of brand identity, positioning,…

Switching Barriers Jonathan Poland

Switching Barriers

Switching barriers are factors that make it difficult or inconvenient for customers to switch from one product or service to…

What are Tactics? Jonathan Poland

What are Tactics?

Tactics are short-term, immediate strategies that are designed to respond to fast-changing realities and situations. They are focused on taking…

A/B Testing Jonathan Poland

A/B Testing

A/B testing, also known as split testing or experimentation, is a statistical method used to compare two versions of a…

Price Promotion Strategy Jonathan Poland

Price Promotion Strategy

A price promotion is a marketing strategy that involves temporarily lowering the price of a product or service in order…

What is Fandom? Jonathan Poland

What is Fandom?

Fandom refers to the subculture that develops around particular popular culture series or formats, such as films, television shows, characters,…

Onboarding Jonathan Poland

Onboarding

Onboarding is the process of introducing a new employee to an organization and providing them with the necessary tools, resources,…