Yield management is the discipline of maximizing revenue from a fixed, perishable inventory, hotel rooms, by controlling price and availability. It is the older, rooms-focused ancestor of today's broader revenue management practice.
Borrowed from airlines, yield management asks whether to sell a room cheaply today or hold it for a better-paying guest tomorrow. Tools include rate restrictions, length of stay controls and closing discounted rates when demand is strong.
In practice, yield management and revenue management are often used interchangeably, though revenue management now extends to total property revenue and profitability. The underlying logic is unchanged, an unsold room night expires worthless, so pricing must anticipate demand rather than react to it.
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