A description of yield management and how it is applied to the aviation industry.
Written in 2002; 910 words; 2 sources; MLA; $ 32.95
Paper Summary:
This paper discusses yield management, an economic stratagem that analyzes change in a demand pattern with a view to optimizing the profitability of a business, and how airline companies can benefit from it.
From the Paper:
" We are in a period of time where the increasing competition forces businesses to formulate flexible as well as profitable strategies. Today management is more focussed upon understanding the subtle differences in the nature of relationship between demand and its determinants. The degree of responsiveness of demand with respect to changes in the determinants (factors) has become a subject of close introspection for the management. "Elasticity of demand" is an important factor and plays a crucial role in the management decision-making process. Yield management is nothing but an economic stratagem that is applied in response to the change in demand pattern and with a view to optimizing the profitability of the business. "
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