A pricing strategy that adjusts room rates based on predicted demand to maximize total revenue.
Yield management is a strategic pricing approach used by hotels to sell the right room to the right guest at the right time and the right price. Originating from the airline industry, it uses historical data, market trends, and demand forecasts to dynamically adjust pricing. The goal is to maximize revenue per available room by raising rates during high-demand periods and offering competitive pricing during low-demand periods, ensuring optimal occupancy and revenue balance.
Without yield management, hotels leave significant revenue on the table. Charging a flat rate year-round means underpricing during peak periods and overpricing during slow periods. Effective yield management can increase total revenue by 5-15% without adding a single room. It allows hotels to capture maximum willingness to pay during high demand while filling rooms that would otherwise sit empty during low demand.
Opally supports yield management by providing real-time guest communication that reflects current pricing and availability. When rates change dynamically, Opally pulls live data from your PMS to ensure guests always receive accurate pricing information via chat, email, or voice - reducing booking friction during high-demand periods.
