Yield management, also known as revenue management, is the process of understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource (such as airline seats or hotel room reservations). The challenge is to sell the right resources to the right customer at the right time for the right price. This process can result in price discrimination, where a firm charges customers consuming otherwise identical goods or services a different price for doing so. Yield management is a large revenue generator for several major industries.
This research attempted to examine the application of yield management to a container shipping industry which also provide for carrying service under various circumstances even though the demand can be easily changed.
Compared to the use of yield management in Airline industry, the article illustrated the conception of yield management , various model. This study will look into the application of yield management in a container shipping industry. Through this study, it is expected that the increasing revenue or profit will be taken into effect in a container shipping industry to apply the yield management as the airline industries have achieved the success to make a profit.
The application of yield management techniques in a container shipping industry is a kind of good strategy for strengthening competitiveness of container shipping industry.