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The Measurement of Revenue Management Policies: RevPAR and Yield Rate

In: Economic Value and Revenue Management Systems

Author

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  • Alessandro Capocchi

    (University of Milano-Bicocca)

Abstract

This chapter highlights the link between RM systems and integrated business information systems in order to support planning processes and increase business profitability. RM systems are based on two main levers: dynamic pricing and capacity allocation. RM systems are strategically important to support the prediction and manipulation processes of the behavior of potential customers and to maximize the business profitability. In RM systems, accounting and non-accounting variables play a significant role in supporting decision-making processes, controlling expected demand, allocating production capacity available, and matching the willingness to pay of potential customers. Focusing on the complexity of RM systems, the author describes the important role played by two indicators: RevPAR and yield rate. RevPAR measures the profitability of the business based on pricing policies and the level of exploitation of the company’s production capacity. The yield rate is an expression of the company’s economic efficiency.

Suggested Citation

  • Alessandro Capocchi, 2019. "The Measurement of Revenue Management Policies: RevPAR and Yield Rate," Springer Books, in: Economic Value and Revenue Management Systems, chapter 9, pages 167-189, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-02417-8_9
    DOI: 10.1007/978-3-030-02417-8_9
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