Which of the following is NOT a risk associated with the use of yield management?
A) Incompatible incentive and reward systems
B) Overbooking
C) Customer alienation
D) Loss of competitive focus
E) All of the above are risks associated with the use of yield management.

Question

Quizplus · Accepted Answer

Yield management, also known as revenue management, involves using predictive analytics to make decisions about pricing and inventory. All the options listed (A: Incompatible incentive and reward systems, B: Overbooking, C: Customer alienation, D: Loss of competitive focus) are potential risks associated with the use of yield management. These risks can arise from the strategies employed to maximize revenue, such as adjusting prices based on demand or overbooking to account for cancellations, which can lead to customer dissatisfaction, misaligned incentives among staff, or losing sight of broader competitive strategies.

Which of the Following Is NOT a Risk Associated with the Use