Unleashing the Power of Yield Management in the Internet Era: Opportunities and Challenges

by Howard Marmorstein, Jeanne Rossomme, Dan Sarel



The profitability of many firms hinges upon their ability to extract the maximum amount of revenue from a fixed quantity of perishable goods and/or services. Yet most firms in this situation have not invested in yield management systems to address this dilemma. This article explains why minimal use of yield management techniques may have been appropriate in the pre-Internet era. It then explains the major changes to the marketing landscape fostered by the Internet that enable the effective practice of yield management. There are multiple yield management approaches that have potential to increase profitability significantly. The article highlights the most important factors for managers to consider when re-assessing the viability of yield management systems at their firms.

California Management Review

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Published at Berkeley Haas for more than sixty years, California Management Review seeks to share knowledge that challenges convention and shows a better way of doing business.

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