Yield management relies on which of the following to forecast demand?

• A. Seasonality, booking pace, historical data
• B. Random guess
• C. Only current day's demand
• D. Customer satisfaction scores

Answer: (A)

Yield management forecast relies on patterns that show how demand behaves over time, not on guesswork or metrics about service quality. Seasonality captures the predictable rises and falls in demand across weeks, months, or holidays, giving a sense of when rooms or seats are likely to be more or less sought after. Booking pace tells you how quickly reservations are coming in as a date approaches, signaling near-term demand strength or softness. Historical data provides actual past performance—how occupancy, prices, and demand moved in similar periods—to inform expectations and calibrate pricing strategies. Put together, these inputs create a reliable forecast that guides how inventory and prices should be adjusted to maximize revenue. Random guesses, focusing only on today’s demand, or relying on customer satisfaction scores don’t provide the forward-looking, pattern-based insight yield management needs.