yield management
price adjustment that secures maximum profits securing maximum profits from available capacity by manipulating pricing to gain business at different times, and from differing market segments. Yield management is used particularly in service industries such as the airline, hotel, and equipment rental industries, where there are heavy fixed overheads and additional revenue has a big impact on bottom line profitability. Increasing computing power has enabled organizations to integrate complex information from different sources (for example, customer travel histories and current information on bookings) and use mathematical models to analyze the possibility of increasing profitability. Hotel businesses, for example, can use price offers to increase "revenue per available room," or "RevPAR," on the basis of yield management analysis.
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