Lower off-season prices and higher peak-season prices for lodging at resorts illustrate the use of yield management as a strategy to generate revenues for a largely fixed-cost industry.

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Yield management is a pricing strategy used by the hospitality industry to maximize revenue by dynamically adjusting prices according to demand. Typically, lower prices are offered in the off-season when demand is low to attract more customers, while higher prices are charged during peak season when demand is high. This helps resorts to generate revenue for costs that are largely fixed, such as staffing, utilities, and maintenance.

Lower Off-Season Prices and Higher Peak-Season Prices for Lodging at Resorts