Difference between yield management and revenue management

Difference between yield management and revenue management

When you have a minimum quantity of products that you need to sell, but you are looking to some at least a decent amount of profit from it, you need to employ the process of yield management. In the context of a hotel, the product that is to be sold are the rooms of the hotel. The hotel then looks to sell the rooms to customers who are in dire need of rooms and having

identified their need, looks to sell to them at a competitive rate.

The time of the sale is also an opportune moment, when the need of the customer is high. It is at this juncture, that the revenue management Melbourne and procedures are put into place.

What is the system of Yield Management in hotels?

The success of the hotel business lies in level of the occupancy rate. However, the success rate of all hotels are not judged by this yardstick. But in most cases, the hotel business tries to optimize its business by the mechanisms of yield management.

A number of dynamics go into the making of success yield management in hotel business. They are:  having a thorough understanding of revenue and yield management in hotels  the possibilities of high returns from the hotel  unforeseen exigencies must be taken into account  The possibilities of fluctuation in the generation of revenue.

 Making the product cost effective in case of an increased traffic and vice versa It is the duty and responsibility of the yield manager to consider and calculate the returns under such conditions and formulate a revenue generation plan to ensure that the business gains high returns. There are many yield and revenue management companies in various cities around the world to provide their expertise to hotels both in the locality and far off.