Yield management is the process of understanding, anticipating and influencing consumer behavior in order to maximize yield or profits from a fixed, perishable resource (such as airline seats or hotel room reservations or advertising inventory). As a specific, inventory-focused branch of revenue management, yield management involves strategic control of inventory to sell it to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so. Yield management is a large revenue generator for several major industries; Robert Crandall, former Chairman and CEO of American Airlines, gave Yield Management its name and has called it "the single most important technical development in transportation management since we entered deregulation."
Read more about Yield Management: Definition, History, Use By Industry, Econometrics, Yield Management System, Ethical Issues and Questions of Effectiveness, Experimental Studies of Yield Management Decisions
Famous quotes containing the words yield and/or management:
“Quarrel not at all. No man resolved to make the most of himself, can spare time for personal contention. Still less can he afford to take all the consequences, including the vitiating of his temper, and the loss of self-control. Yield larger things to which you can show no more than equal right; and yield lesser ones, though clearly your own. Better give your path to a dog, than be bitten by him in contesting for the right. Even killing the dog would not cure the bite.”
—Abraham Lincoln (1809–1865)
“People have described me as a “management bishop” but I say to my critics, “Jesus was a management expert too.””
—George Carey (b. 1935)