Procurement terms: Y

In manufacturing, yield describes the ratio of usable outputs as a percentage of total output. The term is also used in some industries as a synonym for return or profit. See also Profit.

This term refers to a revenue management approach that seeks to price at different levels depending upon a number of factors, based on the premise that different customers are willing to pay different prices for the same product or service. In the airline and hospitality industries there are high fixed costs, finite capacity, a high degree of perishability and multiple market segments. Instead of charging a single price to every potential customer, multiple pricing may apply depending upon the target segment, the timing of the purchase and the amount of available capacity.