Successful yield management is best described as
A) making sure that every room in the hotel is sold at full price or rack rate
B) maximizing utilized restaurant food and minimizing wasted food
C) managing the sale of capacity units to maximize their profitability
D) ensuring value is more than cost

Question

Quizplus · Accepted Answer

Yield management involves managing the sale of capacity units, such as hotel rooms or airline seats, to maximize their profitability. This involves adjusting prices based on demand and availability in order to sell the right product to the right customer at the right time for the right price. It is not about selling every room at full price or minimizing wasted food, and while ensuring value is important, it is not the defining characteristic of yield management.

Successful Yield Management Is Best Described as