Price Sensitivity Measurement: A Yield Management Approach

The purpose of this paper is to investigate and identify the potential revenue losses, at price points determined by sensitivity measurement, between actual that can be gained, in terms yield management. A case study was carried out a 5 star hotel business Aydın, Turkey. In study, questionnaire conducted determine resistance levels, threshold limits, levels perceptions based on room quality tourists visiting business. Also, an interview performed with accounting manager front office about prices determined. Hotel businesses optimal depending value perception customers; thus they use their limited capacity more efficiently so maximize yield. This showed lost all calculated. suffered loss 35-40% because high occupancy rate July August. industry could have sales revenues much than revenues, especially if agency commission expenses reduced.