Yield Management, also known as revenue management or yield optimization, refers to a strategy for maximizing revenue or profit from limited resources by setting the right prices for products or services at the right time. Typically applied in industries where demand is variable and capacity is limited, such as airlines, hotels, car rental companies, and venues.
Typical functions of software in the field of Yield Management include:
Demand forecasting: The software analyzes historical data and other factors to estimate future demand and make predictions.
Price setting: Based on demand forecasting, the software sets dynamic prices that can adjust in real-time to support revenue maximization.
Inventory management: The software monitors and manages available inventory or resources to ensure they are optimally utilized.
Rate control: It allows for the adjustment of prices and rates based on various factors such as demand, seasonality, events, and other external influences.
Booking and reservation management: The software assists in managing bookings and reservations to ensure efficient use of capacities and maximization of revenue.
Reporting and analysis: It provides reports and analyses on the performance of yield management to gain insights and improve future strategies.