The A-Z business fleet guide – Y is for Yield management

Yield management is a term coined by former American Airlines CEO Robert Crandall, who described it as: “The single most important technical development in transportation management since we entered deregulation.”

Crandall wanted a system that would vary the proportion of discount and full-fare seats on a day-by-day, departure-by-departure basis.

In the car industry, yield management relates to the sale of optional insurance, damage waivers and vehicle upgrades.

It is more of a consideration for the vehicle manufacturer or broker, as it allows these parties to manage rental rates against capacity (available fleet) and demand.

If you’ve found this article useful then make sure you visit our complete A-Z of business fleet terms, which provides a complete glossary so you can make an informed purchasing decision.

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