Yield management balances between which two goals?

• A. Occupancy and rate
• B. Brand loyalty and call center volume
• C. Menu mix and beverage cost
• D. Transportation schedules

Answer: (A)

Yield management in hospitality hinges on using price and capacity as the two levers to maximize revenue. The idea is to fill as many rooms as possible (occupancy) while also charging as much as possible per room (rate). When demand is high, you raise rates to capture more revenue without drastically reducing occupancy; when demand is weak, you lower rates to attract bookings and improve occupancy. Since rooms are perishable inventory—unsold rooms for a night cannot be saved—the optimal strategy always involves balancing how full you are with how much you charge. That’s why occupancy and rate are the two goals yield management strives to balance.