What does "yield management" aim to achieve in hotel operations?

Yield management aims to adjust room rates based on demand to maximize revenue for the hotel. This practice involves analyzing various factors such as booking patterns, seasonality, local events, and current market trends to determine optimal pricing strategies. By dynamically adjusting prices, hotels can maximize occupancy and revenue per available room, ensuring that room inventory is sold at the best possible rates aligned with market demand.

For instance, during peak seasons or special events, hotels may increase rates to capitalize on higher demand, while in slower periods, they might lower rates to attract more guests. This strategic pricing approach helps hotels respond to market fluctuations effectively, ultimately contributing to better financial performance.