Yield Management Right Tool, Wrong Application?
Eric F. Nusbaum · The Journal of Hospitality Financial Management · 1993
Like many other new techniques of management, the initial response to Yield Management was not totally enthusiastic. There were doubts about the effectiveness and applicability of the technique. But as evidenced by articles in the scholarly and trade press/seminars at industry conferences, and conferences specifically on the topic (the Fourth Multi Industry Conference on Yield Management was held in San Antonio, Texas in March), the technique has become wide-spread and popular. A number of different software companies market yield management packages of varying complexity and costs to the hotel industry, all of which claim to be able to increase the profitability of hotels by adjusting rates to meet demand: increasing rates during periods of high demand, thus increasing revenue and profits, and lowering rates during periods of weaker demand, thus capturing a greater market share, believing that with increased volume comes increased profitability.