Yield Management

Yield Management

A pricing strategy used to maximize revenue by varying prices based on demand and inventory levels. Yield management is commonly used in industries with perishable or time-sensitive products, such as airlines, hotels, and rental car companies, to optimize revenue and occupancy rates.

Related Terms

High-Low Pricing

A strategy where a company sets an initial high price for a product and later reduces

Market Share

Represents the portion of an industry’s total sales that is accounted for by a specific company

Gross Margin

The difference between the revenue generated from sales and the cost of goods sold, expressed as