Revenue Management Vs Yield Management

While there are many similarities revenue and yield management are two distinct concepts.

Revenue management vs yield management. Both yield and revenue management are important tools for hotel managers and their sales strategy. Revenue and yield management 7 1 1 difference between yield management and revenue management yield management arrived first and very much focused on maximising the rev enue yield from the combination of selling price and volume of activity. You can think of it like the grandfather of modern revenue management as it was one of the earliest techniques for maximizing a hotel s revenue today it continues to play a big role in how revenue management systems like infor ezrms deliver results for hotels. While these two concepts are similar yield management was theorized earlier on and its focus is narrower.

Yield management sometimes synonymous with revenue management yield management is the process of understanding anticipating and reacting to customer needs and behavior with the intent of maximizing revenue. However close yield management and revenue management are not interchangeable terms. Yield management is a fundamental concept for profitable hotel management. Yield management is an inventory focused branch of revenue management yield management is a variable pricing strategy based on understanding anticipating and influencing consumer behaviour in order to maximize revenue or profits from a fixed time limited resource.

The yield management is primarily concerned with enhancing profits and that is how it gives the activity to the revenue management focused on the optimization pulling the pricing lever. Revenue management versus yield management. Yield management does not take into account the cost associated with the service such as fuel and labor and ancillary revenue for example bottled water or an extra luggage on a bus. Yield management involves the use of dynamic pricing to.

Both terms are well known and are commonly used to describe the same thing. Yield management is narrower in scope focusing on selling price and volume of sales with the object of. Eventually the revenue management is a more comprehensive term and the yield management can be under circumstances seen as a part of it. However the two concepts can be clearly defined and distinguished from each other.