How CRM can transform Yield Management for Airports and Car Parks

While yield management has been part of business theory for well over a decade it’s only in recent years that customer relationship management technology has been able to unlock the true potential of this powerful technique. Put simply yield management is a way of increasing revenues by smarter management of the resources needed to generate them. It’s a complex balance of a number of factors including pricing, cross-selling and up-selling, and managing e-commerce channels, a balance which is made easier by advanced CRM solutions.

To use the example of an airline the number of seats in a plane are fixed and it’s not feasible to change the aircraft based on demand. However, the price of the seats can be managed so that on flights where there’s low demand they can be sold more cheaply thereby increasing the yield. Likewise seats on a flight where there’s a high demand can be sold for a premium. In both cases revenue is maximised by dynamically managing the price.

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