Yield Management
Yield Management is a pricing and capacity strategy that helps airlines and hotels make the most money from their available seats or rooms. Think of it like selling ice cream: on a hot day, you can charge more because more people want it. Similarly, airline tickets cost different amounts depending on when you buy them and how many seats are left. People who work in Yield Management use special computer systems to decide what prices to charge at different times. This approach is also called "Revenue Management" or "Dynamic Pricing." These professionals help companies maximize their profits by adjusting prices based on demand, timing, and availability.
Examples in Resumes
Increased airline revenue by 15% through implementing Yield Management strategies
Managed Revenue Management systems for international flight routes
Led Yield Management team in optimizing seat pricing across 50 destinations
Applied Dynamic Pricing techniques to improve flight profitability
Typical job title: "Yield Management Analysts"
Also try searching for:
Where to Find Yield Management Analysts
Professional Organizations
Online Networks
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you develop a pricing strategy for a new route launch?
Expected Answer: Should explain how they would analyze market demand, competitor pricing, seasonal trends, and customer segments to create an initial pricing structure, then describe how they would adjust it based on booking patterns.
Q: Can you describe a situation where you had to balance revenue targets with market share objectives?
Expected Answer: Should demonstrate understanding of strategic decision-making, explaining how to weigh short-term revenue gains against long-term market position and customer loyalty.
Mid Level Questions
Q: How do you determine when to open or close booking classes?
Expected Answer: Should explain basic principles of inventory management, considering factors like historical booking patterns, current booking pace, and competitor actions.
Q: What factors do you consider when forecasting demand for a route?
Expected Answer: Should mention seasonality, historical data, events, economic factors, and competitive environment as key considerations in demand forecasting.
Junior Level Questions
Q: What is the difference between yield management and revenue management?
Expected Answer: Should explain that yield management focuses on maximizing revenue per seat/room, while revenue management is a broader term that includes overall revenue optimization strategies.
Q: How does seasonality affect pricing decisions?
Expected Answer: Should demonstrate understanding of basic pricing principles, explaining how demand varies by season and how prices should be adjusted accordingly.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of pricing principles
- Data analysis and reporting
- Use of revenue management systems
- Understanding of booking patterns
Mid (2-5 years)
- Demand forecasting
- Competitive analysis
- Strategy implementation
- Performance monitoring and reporting
Senior (5+ years)
- Strategic planning
- Team leadership
- Revenue optimization
- Market strategy development
Red Flags to Watch For
- No understanding of basic pricing principles
- Lack of analytical skills or experience with data
- No knowledge of airline or hospitality industry
- Poor understanding of supply and demand concepts
- No experience with revenue management software
Related Terms
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