Yield Management is a branch of Revenue Management that involves understanding, anticipating and influencing your customer’s behaviours in order to get the highest profits from a perishable resource such as hotel rooms. It involves offering strategic control of inventory in order to sell it to the right customer, at the right time, for the right price.

Yield management allows rates to fluctuate based on the how many rooms are available for sale. For example:

The Best Available Rate for a Deluxe Double room is currently setup at $100.00. The rate should increase as occupancy increases.

• When the occupancy is 0 – 25% the rate is offered at $100.00
• When the occupancy is 26 – 50%, the rate is offered at $110.00 (a 10% increase)
• When the occupancy is 51% - 75%, the rate is offered at $120.00 (a 20% increase)
• When the occupancy is 76% - 100%, the rate is offered at $130.00 (a 30% increase)

The Yield Management feature can be used so that these increases occur automatically based on Occupancy Percentages. For more information on how to setup Yield Management, proceed to the article “How to Setup Yield Management”