Hi, does anybody know if there is difference between revenue management and yield management. Both terms are often used in one breath and during my research on the terminology they are often compared to each other. So far I do understand that revenue management is a spin-off from yield management.

Hi Mike,

I don’t think there is a difference, I looked at a couple of Wiki pages (see below), probably the same as you did, but could not find any differences.

Resources used:
http://en.wikipedia.org/wiki/Yield_management
http://en.wikipedia.org/wiki/Revenue_Management

They do explain the two terms very well though.

regards,
Tammo

Yield management, which is an inventory management system, is an integral part of sales and marketing functions in any hotel premise.

The advent of internet technology has helped expand the utility of Global Distribution Systems, allowing end consumers to directly interact with these systems.

Yield management allows properties to discount with discretion in order to build market share, uncover hidden demand that promotes aggressive pricing, identify lost revenue opportunities and most importantly, increase revenue growth without increasing fixed costs.

Angaisnet.

Hi Mike,

Yield and revenue management are one and the same.  Yield management was more a term coined by airlines…

ASEAN-Hotelworks.com

Thank you! I checked your site ( http://www.asean-hotelworks.com/The understated importance of yield management.html ) where I found the full explanation to your answer, very interesting!!

Regards,
Mike

I think it will be interesting to see if hotels learned thier lesson after 9/11.

Will they now drop rates?

Will they ignore the lesson discounting does not increase demand?

Hi there,
      i think that Yield management (YM) tends to emphasize revenue management, which is understandable, given the capital intensive nature of the hotel industry. To evaluate these strategies profitability or return must be assessed, together with management performance or efficiency, in the context of the level of risk to which the investment is subjected. Provides a two-step matrix model with which hotel owners and operators can evaluate their yield management strategies and quantify their effectiveness.I do not agree that Revenue Management is Yield Management at least not in the context we use it in the Forum.  Yield Management is as the definition says to maximize revenue from a scarce resource and yes revenue management plays a role, but they are not equal.
I believe we are being a little too philosophical in this discussion - let’s get back to basics:
Revenue Management Systems are part of BSS - yes or no?
If it is part of BSS what is excluded from Revenue Management in BSS?
Revenue Assurance in a function of Revenue Management, but not equal to it - it is a subset thereof - yes or no?
I also believe we should not include things that are controlled by people and business strategies in a definition of Revenue Management like increase profits since that is not in the control of a revenue management system installed in any enterprise to improve or not improve profitability.
Best Regards….

Yield Management and Revenue Management mean essentially the same thing. The terms are often used interchangeably. If you have any specific questions on Revenue Management, I will be glad to assist. You can also visit http://www.hsuperstars.com. This is a global hospitality careers website which offers many resources to hospitality superstars.

Understanding the difference between yield and revenue management can be vary from industry to another using the same terms but in implementation can be vary.
But still revenue management is essentiality coming from yield management as definition.
You can visit http://www.revenueyourhotel.com, there are many articles about revenue management  

I am assuming that yield management is the same as revenue management….