Yield management

This article or the following section is not adequately provided with supporting documents ( e.g. individual evidence ). Information without sufficient evidence could be removed soon. Please help Wikipedia by researching the information and including good evidence.

Web links and literature are mentioned, but there is no evidence for the individual statements. - Michael Metschkoll ( discussion ) 8:00 p.m., 25 Mar. 2017 (CET)

The yield management [ jild ˌmænɪdʒmənt ], often with revenue management translated, is an instrument for simultaneous and dynamic, mostly computer-based pricing and capacity management. It is derived from Yield , the English term for yield .

In principle, yield management is a special form of price differentiation . In contrast to the classic price differentiation, the prices vary not only at the product level , but also for individual goods (not: theatrical performance on Saturday −10%, but: performance on October 1st −15%; October 8th −5%). Another special feature is that it is based on quotas (a theater gives 20 seats out of 100 for students, the rest is sold at the normal rate ). If a quota is used up, the associated tariff is no longer available. What makes the allotment appear somewhat unusual at first glance is that the corresponding allotments can not only be linked to observable or verifiable criteria (student, club member), but also to behavior (the airline releases 10 seats for € 1 and 15 for € 1 half price. First come, get the cheapest tariff still available - on the outside it looks like prices will rise over time).

Various statistical forecasting methods are used to predict when which contingent should have which starting size , which determine the expected demand on the basis of historical data on buyer behavior. Due to the complexity of the task, this is usually done with the help of powerful computer programs. In the event of incorrect prognoses, additional secondary allocation mechanisms exist. B. when there is high demand, transfer capacities from lower tariffs to more expensive ones.

Yield management creates the basis for budget preparation and must be integrated into all marketing activities. Good yield management creates an even capacity utilization even with strongly fluctuating demand and maximizes the total yield of a service unit, even if the average prices can be lower than planned. It was originally developed by American Airlines as part of the deregulation of the aviation sector. Corresponding technologies and systems can now be found at every major airline. Outside of the aviation sector, yield management is mainly used in hotels, in the transport industry and by car rental companies (a pricing policy instrument that is generally suitable for service providers under certain conditions).

A term that is often equated with yield management is revenue management . However, this equation is incorrect. "Yield" as a parameter originated in the days of deregulation in commercial aviation. The so-called yielding deals exclusively with increasing the quality of bookings through appropriate pricing strategies. Revenue management includes other key parameters. Furthermore, revenue management is not only about increasing the yield, but also, depending on the demand, it also includes the targeted improvement of the booking volume. Thus, yield management is part of revenue management, which also includes other key parameters.

Many hotels mistakenly use the term "yield". It is often confused with or equated with the average rate. The correct key figure for yield management is the RevpaR, i.e. the revenue per available room:

Revenue / available rooms (corresponds to the total number of rooms ./. Out of order rooms)

For comparison: In commercial aviation, yield is clearly defined: Yield = Revenue / RPK (number of passengers * kilometers flown)

Whether this equation is justified is still controversial in the literature. The methods described are in any case very similar, although the instruments of revenue management are often described more extensively than is the case with yield management.

literature

• Robert Klein, Claudius Steinhardt: Revenue Management: Fundamentals and Mathematical Methods. 2008, ISBN 978-3-540-68843-3 .
• Kalyan T. Talluri, Garrett J. van Ryzin: The Theory and Practice of Revenue Management. 2005, ISBN 0-387-24376-3 .
• Robert L. Phillips: Pricing and Revenue Optimization. 2005, ISBN 0-8047-4698-2 .
• C. Maglaras, J. Meissner: Dynamic Pricing Strategies for Multi-Product Revenue Management Problems. MSOM 2006.
• AG Mauri: Yield management and perception of fairness in the hotel business. In: International Review of Economics. Springer, ISSN  1865-1704 , Vol. 54, No. 2, 2007, pp. 284-293.
• AG Mauri: Hotel Revenue Management: Principles and Practices. Pearson, 2013, ISBN 978-88-6518-146-1 .

Web links

• More and more hotels are relying on automatic systems for their pricing policy , interview with revenue management expert Fabian Specht at Manager Magazin
• Revenue Management (Part 1). ( Memento from December 18, 2015 in the Internet Archive ) of the professional series in the Hotelier Magazin

Individual evidence

1. ↑ Yield Management | Yield management - definition, application in detail . In: digital-sales . September 6, 2017 ( digital-sales.de [accessed January 12, 2018]).