Recruiter's Glossary

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Yield Management

Term from Hospitality industry explained for recruiters

Yield Management is a pricing and capacity strategy used in hotels and travel businesses to maximize revenue. Think of it like pricing airline tickets or hotel rooms differently based on demand - cheaper during slow periods and more expensive during busy times. It's similar to what companies like airlines do with their ticket pricing. People who work in Yield Management use special computer systems to predict customer behavior and adjust prices accordingly. You might also hear it called "Revenue Management" or "Dynamic Pricing" - they all mean roughly the same thing.

Examples in Resumes

Increased hotel revenue by 25% through implementing Yield Management strategies

Led Revenue Management team for a chain of 5 hotels

Utilized Yield Management techniques to optimize room pricing during peak seasons

Typical job title: "Yield Managers"

Also try searching for:

Revenue Manager Yield Management Specialist Revenue Optimization Manager Pricing Analyst Revenue Analyst Hotel Revenue Manager Revenue Strategy Manager

Where to Find Yield Managers

Professional Associations

Online Communities

Job Boards

Example Interview Questions

Senior Level Questions

Q: How would you develop a pricing strategy for a new hotel property?

Expected Answer: Should discuss analyzing market competition, understanding seasonal demand patterns, setting up pricing tiers, and implementing technology systems to track and adjust prices. Should mention training staff and measuring success through key performance indicators.

Q: How do you handle revenue strategy during a market downturn?

Expected Answer: Should explain strategies for maintaining revenue during low demand periods, including market segmentation, promotional strategies, and adjusting pricing without devaluing the product long-term.

Mid Level Questions

Q: What metrics do you use to measure yield management success?

Expected Answer: Should mention RevPAR (Revenue Per Available Room), occupancy rates, average daily rate (ADR), and how these metrics work together to show overall performance.

Q: How do you balance pricing against competitor rates?

Expected Answer: Should discuss monitoring competitive pricing, understanding your property's unique value proposition, and making informed decisions about when to match, exceed, or undercut competitor prices.

Junior Level Questions

Q: What is RevPAR and why is it important?

Expected Answer: Should explain that RevPAR (Revenue Per Available Room) is a basic measure of hotel performance, calculated by multiplying average daily rate by occupancy percentage.

Q: Explain the difference between high and low season pricing.

Expected Answer: Should discuss basic concepts of seasonal demand, how prices change based on peak times, and why different rates are needed for different periods.