Yield management is a strategy when an organization analyzes and predicts customer behavior to determine the best way to increase business profitability by minimizing the loss of perishable resources. The information needed may include financial statistics, competitor data, research and forecasts of consumer behavior, and other elements.
Based on this information, the organization draws up a specific action plan for each service and product, depending on customer preferences and market conditions. The correct application of this strategy can reduce unnecessary costs and increase the efficiency and profitability of the enterprise. The downside of yield management is its strong dependence on external factors and the inability to make accurate forecasts. There is always a risk of force majeure that requires an additional plan.