Are you making good profits for your hotel?
In revenue management, we also refer to it as “harvest” or “absorption”. - An image that makes sense when talking about supply and demand in market economy.
Due to natural catastrophes, whole harvests can get destroyed. This cuts down supplies and wheat prices shoot up at the stock market. Indeed, we encounter yield management everywhere these days. Everywhere we look, companies control or yield the prices and offers and hence also their customers, to a certain degree. We have long gotten used to ticket prices ranging from 9.99 to 999 euros for the same flight. And the railway, car rental companies and many more act the same way. Especially those providers with limited capacities. When demand is high, hotel owners can sell their rooms two or three times as much.