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Yield management is a pricing model, based on predicting, influencing and controlling consumer behavior so as to optimize profits or revenue out of a finite, recurring resource. It involves the allocation of finite resources to achieve long term goals of customer satisfaction or return on investment (ROI) within a hotel or other hospitality environment. Some common examples include energy and water consumption management, scheduling and guest response rates, quality management, and the pricing model called "fixed price". In this article we discuss the benefits of hotel yield management, and why some hotels choose to implement this pricing model rather than relying on more traditional pricing models.
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