Yield management is most associated with maximizing revenue rather than just increasing occupancy.

• A. True
• B. False
• C. Sometimes true
• D. Not related

Answer: (A)

Yield management focuses on optimizing revenue by dynamically pricing and controlling inventory based on demand forecasts. The aim is to capture the most revenue possible from available capacity, using strategies like price differentiation, demand-driven allotments, and booking rules. While filling more rooms can happen as a result of these tactics, the priority is revenue optimization—not simply increasing occupancy. In high-demand periods, prices rise and inventory is restricted to maximize revenue per unit; in slower times, prices may drop or packages offered to attract demand, again with the goal of revenue yield. So the statement that yield management is about maximizing revenue rather than just increasing occupancy is the best description.