notitur.com August 24, 2026

Revenue

Yield management

Yield management is the discipline of selling the right room to the right guest at the right price and time. It was born in the airlines and moved into hotels. It is the mindset that revenue management and dynamic pricing grew out of.

Example Yield management may hold rooms for last minute guests who pay more, rather than selling them cheap early.

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FAQ

What exactly is yield management in hospitality?
It is a pricing strategy that aims to maximize hotel revenue by selling the right room to the right customer at the right time. It originated in the airline industry in the 1980s and was later adopted by hotels to adjust rates based on demand and availability.
How does yield management work in practice?
It works by analyzing historical and real-time data to forecast demand and adjust room prices daily. For instance, if a hotel expects high occupancy for a weekend, it raises rates, if demand is low, it lowers rates to attract last-minute bookings.
How is yield management different from revenue management?
Yield management is the original mindset focused on room occupancy and rate per room, while revenue management is a broader concept that includes managing all hotel income streams. Yield management focuses on revenue per available room, whereas revenue management extends to other areas like dining or events.

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