Managing yield: a marketing perspective

Yield Management has been successfully adopted by the airline industry following deregulation of the US airlines in the 1970s. As a management tool for enhancing profit Yield Management has been adopted within the accommodation division of hotels as a means to increase occupancy and room rates simultaneously. This paper presents the key stages in a Yield Management system and highlights the link between Yield Management and the marketing function within hotels. The authors present five 'Yield Marketing Practices', which are essential for the effective implementation of Yield Management, and introduce a 'Yield Segmentation Process' to direct the collection of some essential marketing data.