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
Idea Generation Jonathan Poland

Idea Generation

Idea generation is the process of generating new and original ideas. It is an essential component of the innovation process…

Rental Lease 101 Jonathan Poland

Rental Lease 101

In general, a rental lease is a contract between a landlord and a tenant that outlines the terms and conditions…

Bargaining Power Jonathan Poland

Bargaining Power

Bargaining power is a concept in negotiation theory that refers to the relative ability of parties to influence each other…

Cause and Effect Jonathan Poland

Cause and Effect

Cause and effect is a concept that refers to the relationship between an event (the cause) and a subsequent result…

Niche vs Segment Jonathan Poland

Niche vs Segment

A niche is a specific, identifiable group of customers who have unique needs and preferences that are not shared by…

Market Value Jonathan Poland

Market Value

The value of an asset or good in a competitive market, where buyers and sellers can freely participate, is known…

Management Decisions Jonathan Poland

Management Decisions

Management decisions are decisions that pertain to the direction and control of a company or organization. These decisions may cover…

Fixed Assets Jonathan Poland

Fixed Assets

Fixed assets are long-term resources that are owned by a business and are used to generate future economic benefits. In…

Project Failure Jonathan Poland

Project Failure

A project is considered a failure when it does not meet the expectations of sponsors and other key stakeholders. This…

Content Database

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

Budget Risk Jonathan Poland

Budget Risk

Budget risk refers to the potential negative consequences that a business may face as a result of budgeting errors or…

Branding Jonathan Poland


A brand is a name, term, design, symbol, or other feature that distinguishes one seller’s goods or services from those…

Internal Communication Jonathan Poland

Internal Communication

Internal communication is the exchange of information within an organization that is designed to help it achieve its goals. This…

Psychographics Jonathan Poland


Psychographics is the study of personality, values, attitudes, interests, and lifestyles. It is a research method used to identify and…

Product Launch Jonathan Poland

Product Launch

Product launch refers to the introduction of a new or updated product to a specific market. This is an important…

Interest Rate Risk Jonathan Poland

Interest Rate Risk

Interest rate risk is the risk that changes in interest rates will negatively impact the value of an investment or…

Creative Services Jonathan Poland

Creative Services

Creative services refer to a range of services that involve the use of creativity and innovative thinking. These services often…

Intellectual Property Jonathan Poland

Intellectual Property

Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic works; designs; and symbols, names…

What is Fractional Reserve Banking? Jonathan Poland

What is Fractional Reserve Banking?

Fractional-reserve banking is a system in which banks are only required to hold a fraction of the deposits they receive…