Hotels try to price rooms to maximize resources by quickly adapting to changes in demand. Part of this involves anticipating consumer behavior and calculating a number of different factors, including demand for rooms at a particular time period, likely length of stay, types of rooms likely to be requested, etc. It wants to be able to sell rooms at the right price to the right people. This pricing strategy is an example of
A) yield management.
B) penetration pricing.
C) price skimming.
D) differential pricing.
E) special-event pricing.

Question

Quizplus · Accepted Answer

This pricing strategy is called yield management, which involves pricing hotel rooms based on the anticipated demand and maximizing revenue by selling rooms at the right price to the right customers. Yield management is an effective way for hotels to optimize their resources and boost profitability.

Hotels Try to Price Rooms to Maximize Resources by Quickly