Yield Management

Braidwood Hospitality Management assists small and medium sized hotels & resorts with yield management training and assist with the development of a comprehensive yield management strategy.

Yield management is simply the process of frequently adjusting the price of a product in response to various market factors, such as demand or competition. Airlines first introduced and understood the value of this application offering deep discounts with advanced bookings; increasing price or closing discounts as the individual flights sold out. It is not uncommon for a business traveller, who has purchased a last minute ticket, to be paying hundreds of dollars more that the passenger in the next seat who purchased a ticket months earlier!

It is a process of rate and inventory management that acts as a filter influenced by demand and competitive factors. When demand is strong, a hotel would filter or close discounted inventory and rates, conversely when demand is weak hotels will open discounted inventory and rates. It is an important tool used by management to drive rate and revenue in periods of high demand and occupancy and revenue in periods of low demand.