Yield management, also referred to as revenue management, is commonly defined as the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource.

The International Dictionary of Hospitality Management states it more transparently as ‘selling the right inventory to the right customer at the right price at the right time.’ In other words, when it comes to perishable inventory, “use it or lose it” is the mantra. It all began on January 17, 1985 when American Airlines launched Ultimate Super Saver fares in an effort to compete with a low cost carrier. The Edelman Prize committee recognized the revenue/yield management systems developed at American Airlines for contributing $1.4 billion in a three-year period. Yield management spread to other travel and transportation companies in the early 1990s including implementation of revenue management at National Car Rental. Since the year 2,000, yield management techniques and dynamic pricing have been applied to many e-commerce sites and even the financial services industry. Variable dynamic pricing is a common and accepted practice in an increasing number of industries, affecting more and more consumer purchases. Today this practice is becoming more widely recognized, understood and accepted by ...