Investment and beyond: A look at yield management

 

Scott Tominaga from PartnersAdmin LLC continues to share with readers everywhere some vital information about investment and business. In today’s blog, he focuses on the hospitality and tourism sectors as both industries have been dealing with a lot of changes in the past decade because of the development of connectivity and the constant globalization.

Before the pandemic hit, the hospitality and tourism industries contributed almost 10 percent of the total economic output, and supported almost 10 percent of jobs in the entire world economy. This is why as far as investments go, Scott Tominaga believes it to be a wise choice. 

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However, for people looking to invest in these industries, it is crucial to their success that they learn about yield management.

Yield management, simply put, is the sale of the right asset, which in this case can be accommodations such as rooms, to the right client at the right time. Yield management can tremendously improve market segmentation through competitive pricing. The method also decreases the incidents of pricing mistakes, and creates a clearer picture of what customers want and expect. 

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In yield management strategies, early booking is pushed, and the prices of rooms increase over time. This justifies higher prices for late bookings and higher profits for investors. People who are well-versed in yield management such as Scott Tominaga know that factors such as customer demands and budgets are constantly changing, hence the need for dynamic pricing.

Scott Tominaga is the Chief Operating Officer of PartnersAdmin LLC. He has almost two decades of experience in the hedge fund and financial services industry. His company was established in 2008 with the intent to provide quality, outsourced solution to the dynamic back office needs of alternative fund industry. To know more about Scott and PartnersAdmin LLC, click here.