The Yield Management In The Airline Company

Abstract

By its process, yield management works on better management to the company capacities according to the demand, where it used different pricing strategies, based on the activity information and customers’ characteristics. In the airline industry, Yield Management used varying pricing, overbooking and seats allocation to manage its flights, by according the capacities to the dynamic demand. Its practices based on maximize the number of seats in each flight. Like any tool, yield management has effects on the company's performance and its customers’ relationship, that are disappear under the positive impact in maximize the revenue.