Operation Management

Reasons for using a yield management system would include: • Assess future consumer behaviour under dynamic market conditions • Determine the most effective way to price and allocate inventory to reach every future consumer, and make real-time adjustments as market conditions change • Communicate this information instantaneously to distribution channels • Serve as a resource for marketing and operational functions An example of a yield management system helping hotel management is if it discovered a trend where travellers were predominantly booking their room 0-6 days before their stay. In this instance it would discourage early bookings at lower rates in favour of keeping more rooms available at higher rates in anticipation of last-minute bookings.