Operation Management

• A basic yield management formula has traditionally been to compare the revenue achieved with the maximum potential revenue. This allows you to track your yield and review performance. For example: • If your hotel has 100 rooms available, with a full rate of 7500 pesos per room, the maximum potential revenue is 750,000. If on a particular night 70 rooms were sold at a lower average rate of 6000pesos , the achieved revenue is 420,000. Therefore the yield percentage is 420,000/750,000x 100 = 56%.