"Yield management" is best described as
A) a situation where management yields to labor demands
B) a situation where the labor union yields to management demands
C) a process designed to increase the rate of output
D) capacity allocation to different classes of customers in order to maximize profits
E) management's selection of a product mix yielding maximum profits

Question

Quizplus · Accepted Answer

Yield management is a revenue optimization strategy that involves allocating limited capacity to different customer segments in order to maximize profits. This involves adjusting prices and availability based on demand, in order to ensure that high-value customers (such as those who book early or pay premium prices) receive priority access to capacity, while lower-value customers (such as those who book at the last minute or are willing to accept lower-quality products or services) are allocated any remaining capacity. Yield management is commonly used in industries such as airlines, hotels, and car rental companies.

"Yield Management" Is Best Described as