Yield management research

In connection with this, the purpose of the assignment is to evaluate the importance of the concept of yield management is the aviation business sector. Yield management is one of the critical managerial theory in the aviation industry; It shares lots of similarity to revenue management but with a small difference. Yield management is more concerned with maximizing revenue from perishable goods and services as well as using price discrimination to optimize organization profit within a short time, where the revenue management is more concern with the bigger picture (Ingold, 2008). For example, yield management may imply charging higher prices for flights for same customers in the different terminal while revenue management would cover the larger picture like maximizing revenue from drinks, food, hotels laundry and all other products offered (Ingold, 2008, pg.

Yield management is a science and art, which utilizes a variable pricing strategy; it is based on understanding and influencing consumer behavior to earn the most significant profits or revenue from a fixed, time-limited resource. It is important to study the reviews availability information in the marketplace and compare your own company’s product to other competitive companies’ products. After that, you can position the products most logically in the marketplace. When a company is following the right steps for the sale process correctly, revenue management can be very effective in helping companies increase their profit margins significantly (Travel Technology & Solutions, 2018). In the airline industry, it uses a sliding scale involving price, inventory, marketing, and various sales channels to determine profitable plane ticket prices based on the customer’s willingness to pay for the destination.