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Revenue Management Glossary

Non-yieldable rates

Definition

Non-yieldable rates are fixed rates for rooms and/or non-room services, which do not change based on market fluctuations, occupancy or other dynamic pricing variables.

How to use it

Non-yieldable rates are generally offered through negotiated rates and/or contracts, and are offered to a variety of different market segments, including corporate, group, government, airline crew, extended stay guests and membership-based segments.

Formula

N/A

Related Terms

Group Bookings, Group Segment, Group Displacement Cost, Fixed Rate, Long-Term Contract, Negotiated Rates, Revenue Management, Inventory Management, Group Displacement Model
“Hoteliers should accept more group bookings (using non-yieldable rates) during the low and shoulder seasons to bolster their bottom line when transient demand isn’t likely to be high. During the high season, when transient customers will pay higher prices for rooms, hoteliers should minimize the number of non-yieldable rates offered and allocate less inventory to lower-earning market segments, such as the membership and airline crew segments.”

Sarah Kock

Sarah Kock