Sample interview questions: Can you explain the concept of yield management and how it applies to hotel revenue management?
Sample answer:
Concept of Yield Management:
Yield management is a revenue optimization technique that aims to maximize revenue by varying prices and inventory availability based on real-time demand. It involves forecasting demand, understanding market segments, and optimizing pricing and inventory allocation to capture the maximum revenue potential while minimizing unsold inventory.
Application in Hotel Revenue Management:
In hotel revenue management, yield management plays a crucial role in:
- Forecasting Demand: Analyzing historical data, market trends, and external factors to predict future occupancy levels.
- Segmenting Market: Identifying and targeting different guest segments with varying price sensitivity and booking patterns.
- Optimizing Pricing: Setting dynamic pricing strategies that adjust rates based on demand, booking lead time, and market conditions.
- Managing Inventory: A… Read full answer