Revenue Analysis

Yield Management and Revenue Analysis

Smiling Faces International has a process of examining and factoring in consumer behavior to achieve the maximum amount of profit from a perishable good. Consumer behavior is examined to determine the correct price level to make the item enticing to the consumer.

The idea is to coordinate timing, price, and consumer buying patterns to achieve the best return. The issue with yield management is that it can often result in unfair pricing for consumers and this is where SFI steps in to correct and to ensure your pricing is competitive with the market. For instance, Allen may book a flight to Tanzania for $500 during the morning and Dickson may book the same flight for $800 that evening.

Allen was able to receive the better price because the flight still had plenty of open seats and the airline was trying harder to entice customers to purchase a ticket. The same buying pattern is what Smiling Faces International focuses on to ensure your hotel has a fair price market share, at the same time maximizing the occupancy.

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