What is the meaning / definition of Yield in the hospitality industry?

Yield simply means revenue made. But a common mistake is to assume that Yield is the revenue created from the selling of rooms and suites and from in-house services within the hotel. That is not necessarily so! Yield can sometimes also mean the money generated from different outlets trading on the hotel’s premises, or connected to it externally. What’s more, Yield can refer to the profitability of a hotel’s departments, measured individually rather than only collectively.

Yield can also be considered a synonym of revenue management simply resumed as the dynamic pricing, overbooking and allocation of perishable assets to maximise revenue.

Managing Yield is essential, for obvious reasons. It is so important that many hotels now employ a Yield manager or even a whole yield management team. These professionals tend to be reliant on computers to perform their jobs – the gathering and analysis of hotel statistics and other data – and may make use of the Internet a lot in the course of carrying out various Yield management-related tasks.

Periodically, yield management professionals will devote time to analysing information pertaining to past transactions for services and goods offered by a hotel, or they will try to forecast the future, with the focus being on projected sales of services and goods not yet supplied.

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