The hospitality and travel industries frequently employ yield management, a pricing strategy. By adjusting prices based on demand, yield management aims to maximize revenue. To put it another way, businesses can charge more when demand is high and less when it is low thanks to yield management. This assists organizations with expanding their income and benefits.
The fact that many businesses, like hotels and airlines, have a fixed capacity is the foundation of yield management. Businesses can ensure that they fill as many of their available seats or rooms as possible by adjusting prices in response to demand. Even during times of low demand, they can generate as much revenue as possible as a result of this.