The competition within the hotel sector is constantly increasing and with it the pressure on hotel owners of selling hotel rooms and services successfully and efficiently. A low-price hotel room still achieves more than an empty one - therefore, in order to being able to sell a hotel for the best-possible price, product knowledge, market observation, target group analysis and price minimum levels are crucial.

 

Thus, hotel businesses should use "yield management" or "revenue management" in order to bring together offer, demand and price in the most flexible and successful way.

 

Yield management is an instrument of dynamic price- and availability control - it is about guiding the demand towards free availabilities with regard to the specific needs of your customers via higher or lower price offerings. Thus, you will be able to maximise your profits. In simple terms yield management means nothing else but selling the right product to the right customers at the right price and at the right time in order to achieving the highest possible profit.

 

Yield management is possible since the time when prices - with the help of highly modern reservation systems - where changed in such a way so that only a certain number of interested parties were able to access these. When your open capacities decrease, your prices increase - when, on the other hand, your open capacities increase, you sell at a lower price. Well-led yield management accomplishes an even room capacity even though facing fluctuating demand and maximises your profit, even when your average price rates turn out to be lower than planned.