What is “Yield Management” meaning?

Yield management is a business strategy that involves adjusting the price of a product or service based on current demand, market conditions, and customer purchasing patterns. Commonly used in industries like airlines, hotels, and SaaS platforms, it helps businesses sell the right product to the right customer at the right time for the right price.

Example

“Our SaaS platform uses yield management to raise subscription rates during peak demand periods and offer discounts during slow months.”

How is “Yield Management” used in business?

In business, yield management allows for strategic pricing decisions that increase revenue potential. It’s often implemented through automated systems that track customer data, demand trends, and seasonal behavior. By adapting pricing in real-time, companies can avoid underpricing or losing revenue opportunities.

Pro Tip

Successful yield management relies on strong data analysis—track customer trends and be ready to adjust quickly based on market signals.

Related Terms

Dynamic Pricing, Revenue Management, Demand Forecasting, Pricing Strategy