ABSTRACT
A technique of allocating the right type of capacity or inventory unit to the right type of customer at the right price so as to maximize revenue or 'yield'. Yield management (YM) is a management tool or technique which is currently being utilized by an increasing number of groups and independently owned hotels in order to maximize the effective use of their available capacity and ensure financial success. YM is not an entirely new innovation and most hoteliers practice some form of YM such as the adjusting of room rates to temper fluctuations between peak and off-peak seasons, mid-week, and weekend rates. The airline industry has been credited with the development and refinement of YM following deregulation of the US airline industry in the late 1970s. The resulting heavy competition led to a price cutting war with some airlines going out of business.
