Definition
The strategic practice of selling the right room to the right guest at the right time for the right price through the right channel. Originating in the airline industry, yield management applies demand-based pricing to maximize total revenue from a fixed, perishable inventory. In hotels, this means continuously adjusting rates and availability based on demand forecasts, competitive positioning, and guest segmentation.
Also related to Autopilot
Related Terms
BARBest Available Rate
The best publicly available, generally unrestricted rate for a given date (often the flexible/refundable rate). BAR acts as the reference point for other rate types (non-refundable, advance purchase, member rates), which may be priced below BAR in exchange for restrictions. BAR changes daily based on demand, competition, and market conditions.
Learn more →Dynamic Pricing
A revenue management strategy where room rates change continuously based on real-time supply and demand factors—current occupancy, booking pace, competitor rates, day of week, seasonality, and local events. Unlike static pricing with fixed seasonal rates, dynamic pricing captures maximum value when demand is high and stimulates bookings when demand is low.
Learn more →Open PricingOpen Pricing Strategy
A modern pricing approach where each room type and rate plan can move independently based on its specific demand, rather than maintaining fixed price differences. Traditional pricing often keeps a suite at a fixed premium (e.g., "BAR + €50"); open pricing lets that premium expand to €100 when suite demand is high or compress to €30 when it's low, maximizing revenue across all room types.
Learn more →Rate Fences
Logical rules and restrictions that justify different prices for the same room—creating distinct rate products for different customer segments. Examples include non-refundable rates (lower price for commitment), advance purchase (discount for booking early), member rates (reward for loyalty), and length-of-stay discounts. Well-designed fences capture maximum revenue from each segment without cannibalizing higher-paying guests.
Learn more →Want to improve your Yield Management?
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