High Season
Carefully tracking which days are likely to have high demand and charging a higher price on these days.Low Season
Identifying days that are likely to have low demand and aggressively discounting. This may have promotional support such as a sales campaign that is advertised.Volume Sales
Selling a large amount of inventory in heavily discounted blocks to partners such as tour companies.Loyalty Rewards
Offering free nights or free trips as part of loyalty rewards but only allowing these to be redeemed in low season.Price Discrimination
Finding ways to differentiate between customers who are price sensitive and those who aren't. For example, charging more for flights that don't involve a weekend stay as a means to charge business travelers a higher price.Terms & Conditions
Using terms and conditions as a means to differentiate between customers who are willing to pay more. For example, cheap tickets that can't be refunded, even months in advance.Perks & Status
Offering perks and customer status to customers who are willing to pay more. This allows heavy discounting without impacting your most loyal and price insensitive customers. For example, cheap flights that don't include any reward points that would increase a customer's status.Last Minute Prices
Low prices for last minute purchases for inventory that is likely to expire anyway.Demand-based Pricing
Aggressively discounting for days that aren't selling well. This is often automated by algorithms.Unpublished Prices
Not publishing lower prices whereby they can be selectively revealed to particular customers but not widely communicated. For example, walk-in prices at a hotel that aren't published on the internet.| Overview: Yield Management | ||
Type | ||
Definition | The dynamic pricing of service inventory that expires at a point in time. | |
Value | The goal of yield management is typically to find ways to charge price insensitive customers more while still achieving a high occupancy rate. | |
Related Concepts | ||
