A definition of Yield Management

Yield

=Income - Expenses

=Profit Margin

Yield Management

Is about finding the best rate to sell a product. It depends on supply and demand. If the price of your product is set too low, you'll have to much clients, and not enough production to sell. The other way around, a product too expensive won't have enough clients to buy it.
Basically Yield is about finding the best rate to equilibrate prices and have a better profit.

 

Yield Management

Yield management

  • You want to get the highest price/costumer as well as the highest number of costumers: Business efficiency
  • As market is constantly moving (depending on weather, or political stabilty for instance), it really is important to be able to change prices in real time.
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