Debunking the Myths of Yield Management
Yield Management has become an accepted part of the hotelier’s lexicon. Yet if you ask ten hoteliers what it is, you are apt to get at least five, and possibly ten, different answers.
On the other hand, ask ten airline executives what it is, and you will likely encounter far greater agreement.
The reason for such disagreement among hoteliers, Dr. Warren Lieberman believes, is that the underlying concepts of yield management have not been well communicated to hoteliers. Yield management in the airline industry is not the same as yield management in the hotel industry.
The root concepts are the same, but the applications and the techniques used to implement the concepts differ widely. Unfortunately, yield management is often discussed in the context of the applications and techniques, not the root concepts.
by Warren H. Lieberman | Published in The Cornell H.R.A. Quarterly Feb 1993