Pearson New International Edition International pcl tp indd 1

Section Summary:
Yield management is a manual- or PMS-driven system
designed to maximize revenue by holding rates high during times of high room
demand and by decreasing room rates during times of lower room demand. It is
used by the airline, hotel, and other industries that sell a perishable commodity
(e.g., an airline seat on a specific flight or hotel guestroom on a specific night).
Revenue managers need to know when yield management should and should not
be used. For example, they should not decrease selling prices when it is not nec-
essary to do so, and they should not increase prices when there will be significant
complaints, legal implications, or long-term negative impact on RevPar. Most rev-
enue managers agree that occupancy and ADR indexes should be close. Rate
integrity is essential, and revenue management is an ongoing, daily activity.