<P> Yield management is a variable pricing strategy , based on understanding , anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed , time - limited resource ( such as airline seats or hotel room reservations or advertising inventory ) . As a specific , inventory - focused branch of revenue management , yield management involves strategic control of inventory to sell the right product to the right customer at the right time for the right price . This process can result in price discrimination , in which customers consuming identical goods or services are charged different prices . Yield management is a large revenue generator for several major industries ; Robert Crandall , former Chairman and CEO of American Airlines , gave yield management its name and has called it `` the single most important technical development in transportation management since we entered deregulation . '' </P>
<P> Yield management is a variable pricing strategy , based on understanding , anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed , time - limited resource ( such as airline seats or hotel room reservations or advertising inventory ) . As a specific , inventory - focused branch of revenue management , yield management involves strategic control of inventory to sell the right product to the right customer at the right time for the right price . This process can result in price discrimination , in which customers consuming identical goods or services are charged different prices . Yield management is a large revenue generator for several major industries ; Robert Crandall , former Chairman and CEO of American Airlines , gave yield management its name and has called it `` the single most important technical development in transportation management since we entered deregulation . '' </P>
revenue ( or yield ) management is best described as
revenue ( or yield ) management is best described as
a variable pricing strategy , based on understanding , anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed , time - limited resource
a variable pricing strategy , based on understanding , anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed , time - limited resource