Which outcome is most directly sought by yield management?

• A. Higher occupancy at any price
• B. Higher revenue through optimized pricing
• C. Increase in long-term market share
• D. Reducing service quality

Answer: (B)

Yield management aims to maximize revenue by adjusting prices and controlling inventory based on demand. The key idea is to capture customers’ willingness to pay at different times and for different segments, so that each available unit (like a room or seat) earns as much as possible. That focus on optimizing price to boost revenue per available unit makes higher revenue through optimized pricing the direct, central outcome.

Filling more units at any price (occupancy at any price) can erode overall revenue if prices are too low. Increasing long-term market share isn’t the immediate target of yield management, which centers on revenue rather than market dominance. Reducing service quality would harm demand and profitability.