Yield management is a fare structure designed to maximize revenue. Which option best represents this concept?

Yield management is a fare structure designed to maximize revenue. Which option best represents this concept?

• A. A discounting program for loyalty
• B. A flat-rate pricing model
• C. A dynamic seating assignment
• D. Yield management

Answer: (D)

Yield management focuses on maximizing revenue by selling the right seat to the right customer at the right time for the right price, using demand forecasts and inventory control to steer pricing and availability. The option that names the concept itself is the best fit because it directly describes this practice. The other choices describe tactics or aspects that aren’t the defining idea: loyalty discounts are just one possible tool, flat-rate pricing ignores demand signals, and dynamic seating assignment concerns seat location rather than how prices and inventory are managed.

Yield management focuses on maximizing revenue by selling the right seat to the right customer at the right time for the right price, using demand forecasts and inventory control to steer pricing and availability. The option that names the concept itself is the best fit because it directly describes this practice. The other choices describe tactics or aspects that aren’t the defining idea: loyalty discounts are just one possible tool, flat-rate pricing ignores demand signals, and dynamic seating assignment concerns seat location rather than how prices and inventory are managed.