What is Yield Management?


Yield Management is a sales optimisation technique based on 3 fundamental elements:

  1. fixed inventory
  2. perishable product
  3. fluctuating demand

Because a hotel has a certain number of rooms built (fixed inventory), that these rooms – if they are not sold tonight – are lost (perishable product) and that demand is variable that Yield Management techniques can be applied.

It’s easy to see that it’s better to sell for less than not to sell your room at all. But beware of misconceptions: Yield Management does not always mean lower prices. In some cases it does, because an empty room costs us a lot (opportunity cost), but in other cases, where demand is predictable and on target, Yield Management can increase the average selling price.

Yield Management definition

The classic definition of Yield Management is the practice of enabling a company to sell :

  • the right product
  • o the right customer
  • at the right time
  • at the right price and
  • for an appropriate period of time

With the aim of optimising product price and availability to achieve maximum profitability.

Yield management by optimising occupancy in slower periods and optimising the average price when demand is there are two levers that contribute to the development of RevPAR, Revenue Per Available Room.

Yield Management integrates a set of pre-compiled and organised information to facilitate decision-making.

How do you set up a Revenue Management strategy?

Any hotel can implement a Revenue Management strategy. Yield Management even works for bed and breakfasts! You don’t have to have 4 or 5 stars to use Yield Management. A 2-star or 3-star hotel can also be optimised.

First of all, to implement a Revenue Management strategy, it is important to carry out an audit of the hotel’s situation.

  • My location? What’s it like?
  • What condition is my hotel in? Is it well maintained? Is it ageing?
  • What makes my hotel different from the others?
  • What are my strengths and weaknesses?
  • What is the state of my e-reputation?
  • Who are my competitors? What are their strengths and weaknesses? How do they sell?
  • What condition are my management and distribution tools in?
  • Is my PMS adapted to Yield Management?
  • Is my booking engine adapted to Yield Management? Does the hotel have a good Channel Manager?
  • Is my website up to date? In terms of photos, information and techniques…
  • How well is my website referenced?
  • Does my website convert properly?
  • etc…

Revenue management without a good website or with a mediocre e-reputation will not have the desired effect. This is why a general audit of the hotel product, its level of quality and all its marketing tools enabling it to be visible on the various markets is essential as a preamble.

Once the audit has been carried out, the dynamic pricing grid needs to be put together using Revenue Management techniques, existing tools need to be adapted, and a Revenue Management Tool (RMS) needs to be put in place.

How do you set up Yield Management?

Start with training

The practice of Yield Management begins with a theoretical knowledge of the practice of Yield Management. Experience on the ground in a hotel, in the reservations department, is an asset, but it is not enough to practise Yield Management correctly. The first step is to adopt the Yield Manager’s philosophy, which is to constantly look for opportunities to increase sales, followed by practical Yield Management techniques.

Setting up Revenue Management software

Why implement a Revenue Management Software (RMS) or Yield Tool? Yield management involves analysing customer behaviour during the booking process. This involves processing and analysing data which, thanks to the tools put in place, will enable the information to be organised for greater efficiency in terms of analysis and decision-making.

Pick up analysis

The art of the Yield Manager is his ability to read load curves and understand the multitude of information they contain, enabling him to plan ahead, anticipate future demand and develop a strategy of rate variations.

Yield Management consultancy and support

PMT Hotels was founded in 2010 and specialises in hotel development and repositioning. Among its areas of expertise, PMT Hotels has become a leader in Yield Management thanks to its multi-market experience, the Yield Management tools it has developed (R.M.S.) and the results it has achieved with small and large capacity independent hotels, both budget and upmarket. PMT Hotels is regularly consulted in the business press (Figaro Economie, Le Nouvel Economiste, l’Hôtellerie-Restauration, etc.).

PMT Hotels advises and supports hotels in their plans to open, reposition or, more broadly, question their image.

Yield Management course

PMT Hotels offers high-level Yield Management training, exclusive to the hotel and in line with the company’s strategy. These courses are attended by the company’s decision-makers. This 3-day training course will enable you to acquire the components of Yield Management while having identified all the levers for developing the hotel’s turnover. These levers may be new sales opportunities in relation to the Product, adapting certain practices, seeking optimum commercial consistency, removing certain barriers that create friction at the time of sale, etc. We work throughout France, in the French overseas departments and territories and abroad.

Contact us for more information about Yield Management

Phone number :

Paris : +33 1 84 20 42 42

Nice : +33 4 84 25 09 76


Formation Yield Management pour hôtels

Exclusive training delivered in your hotel for owners, directors, managers and employees. These courses are led by experts who provide theoretical training and full integration of your hotel’s operational constraints. Post-training follow-up is included and coaching can be envisaged.


Nouvel Outil Yield : Le logiciel de Revenue Management System pour hôtels indépendants et petits groupes hôteliers

Full immersion training in your hotel, or support to gain expertise; manage your workload with our yield tool or outsource to us to optimise your results… consult us to discover the formula best suited to your needs.


Conseil et gestion de projets d'ouvertures d'hôtels

Project management, installation of hotel software, consultancy, drawing up of specifications, study of PMS on the market, configuration… we support you from start-up right through to implementation.

Hotel opening or repositioning projects

Accompagnement en Yield Management pour hôtels

Technical and operational advice on plans, development of a monthly turnover budget and a dynamic budget architecture, Sales & Marketing Plan or Communication Plan, pre-opening services… we support you before, during and also after the launch.

PMT Hotels in the French Press

La presse en parle : PMT Hotels dans le Nouvel Economiste
La presse en parle : PMT Hotels dans Le Figaro Economie
La presse en parle : PMT Hotels dans l'Hôtellerie Restauration