Service companies such as hotels and concert halls offer premium and economy rooms and seats under different price ranges.This technique is an illustration of which of the following yield management strategies?

Question

Quizplus · Accepted Answer

Using different fare classes to partition demand is a yield management strategy that involves categorizing demand into different segments based on price sensitivity and offering different pricing options to each segment. This allows service companies to maximize revenue by filling capacity with customers who are willing to pay higher prices while still accommodating those who are more price-sensitive. Offering premium and economy options for rooms and seats is an example of using different fare classes to partition demand.

Service Companies Such as Hotels and Concert Halls Offer Premium