When you’re dealing with perishable inventory, “first come, first serve” just doesn’t cut it as a business strategy. When your demand outstrips your capacity, you need to be able to predict not only demand, but also the price that your customers are willing to pay. For advanced purchase businesses, you don’t want to price too high too far out in the booking window, thereby denying bookings, but you also don’t want to price too low and risk selling out before your highest-value customers have the opportunity to purchase. You need an accurate forecast to inform a prescriptive optimization in order to maximize your inventory utilization, and fill your capacity with your highest-value customers. With the help of a yield management application and best practices, these are attainable.
What if you could reserve your best inventory for your highest-valued customers while ensuring that your products and services are still widely available? Using yield management to open and close the availability of different products and price levels, you can maximize your revenue throughout the booking window. Yield management starts with being able to forecast remaining demand and expected available capacity, then combines them as inputs in an optimization to determine the appropriate allocation of capacity to best fulfill the remaining demand.
Using our proprietary predictive and prescriptive analytics platform, you’ll be able to accurately predict your demand and capacity at the lowest level of granularity to ensure you get the right mix of business. Whether you’re in hotels, airlines, television, live events, or any other high-cost fixed industry with perishable inventory, yield management is for you. Even if you currently have a yield management solution, recent advancements in analytics and yield management strategies are driving next generation decision support.
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