What is yield management ?
Yield management is a dynamic pricing strategy that adjusts prices in real time to maximize revenue based on supply, demand, and customer segments.
Yield management optimizes revenue by varying prices according to demand patterns, capacity constraints, and customer willingness to pay. Originally developed in the airline industry, it is increasingly applied in SaaS and subscription pricing.
Example: A SaaS platform uses yield management principles to offer lower prices during slow sales periods to fill capacity, and applies premium pricing for high-demand features or enterprise tiers where willingness to pay is significantly higher.
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