Revenue Management


Anna Anna Revenue Manager

Revenue Management versus Yield Management

Both terms are well-known and are commonly used to describe the same thing. However, the two concepts can be clearly defined and distinguished from each other.

We are explaining the difference between Yield Management and Revenue Management

Premise: both yield and revenue management are important tools for hotel managers and their sales strategy. These tools are linked and have some similarities as well as differences. Let's see in what they are different!

Yield Management… a pricing strategy based on achieving the maximum possible turnover with products that cannot be stored. In the hotel sector, this refers to the well-known statement: “Use data to sell the right room to the right guest at the right time and possibly at the highest price”.

The basis for this is a price differentiation, which it is used to achieve a good operating result. Consumers, in this case hotel guests, have different demand behaviours, i.e. the willingness to pay for a hotel room is very different depending on the customer. Because of that, it is possible, or even necessary for a good pricing strategy, to sell the same product (the hotel room) at different prices.

“When is the overnight stay? How long before do I need to book? How strong is the demand for that period?” These and other indicators are the basis for a segmentation that you have to consider for a successful price differentiation.

Revenue Management… a similar concept, but with a broader spectrum. Here, too, the primary goal is to optimize the room sales in order to maximise hotel revenues. The revenue management dives a little deeper into the matter and requires an intensive data analysis as a starting point. PickUp and RevPar are, for example, two important key performance indicators. Future forecast can be derived from the data. Revenue management is also increasingly concerned with the costs of sales and with sales from other areas such as restaurants and SPAs.

In a nutshell: with the revenue management you get the “big picture”, the overall strategy so to speak. The yield management is, on the other hand, only part of the price optimization and can be seen only as part of the revenue management.

RateBoard... a revenue management software and a useful support for hoteliers what concerns dynamic pricing.

The core element of the system is a smart algorithm, which is based on factors such as historical bookings, events, market demand and many others. Since the heart cannot work without inflows, RateBoard can't work without being connected to the hotel program in order to elaborate historical data.

In the frontend, the result of the calculation process will be visualized in form of a calendar with price suggestions. Through the price calendar, data can be modified and sent to all channels. In addition to price suggestions, RateBoard offers analysis tools that give a better insight into revenue management and the world of statistics and KPI. These are used to quickly and easily answer all the above questions before changing prices.


RateBoard offers revenue management for an optimal price decision (yield management).

Do you want to optimize your pricing strategy? Contact us to have more information!