Final answer:
The best yield management tactic during high demand periods is to establish a minimum number of nights per stay, ensuring that lucrative, long-term bookings are prioritized, which in turn increases potential revenue. The correct option is d. Establish a minimum number of nights per stay.
Step-by-step explanation:
The question asks which yield management tactic should be used during high demand periods. Yield management is a strategy used by businesses to maximize revenue through the management of inventory and pricing based on consumer behavior and market conditions. The correct option from the ones provided is to establish a minimum number of nights per stay. This tactic is effective during high demand periods as it ensures that the more lucrative long-term stays are prioritized, thus increasing the potential revenue.
For example, suppose a hotel expects high demand during a local festival. By setting a minimum stay requirement, the hotel capitalizes on the limited availability of rooms and ensures that guests who are willing to pay for the entire duration are given preference. This is in contrast to allowing guests to book for shorter periods, which might result in unoccupied rooms on peak nights due to turnover. Additionally, it reduces the operational challenges associated with managing a high turnover of guests.