We can never repeat it enough:
Yield is no longer an option, it is a necessity.
Boosting your profit depends on a successful revenue management strategy on a daily basis. To achieve this, here are 10 necessary elements that will help you make more margin and profit. And above all, who will help you to ask the right questions about the means to be implemented…
1) Know the Availabilities in real time.
What do we have left to sell?
On which type of room do we have a risk of overbooking?
2) Monitor load increases in real time.
How are the coming days shaping up?
Are there any booking peaks to be expected?
On what date is there an acceleration of bookings?
3) Easily access historical data.
Am I late or early compared to previous years?
On what date do I have a better chance of receiving the request?
When did bookings start for a given date?
4) Manage & keep a history of events.
What are the upcoming events?
Are they likely to have a positive, neutral or negative influence on your turnover?
What was the historical production for the World Motor Show or the Tour de France?
5) Set budget targets & be able to manage them from anywhere!
What is my turnover expectation for 2019, 2020?
Am I late or early?
Haven’t I exceeded my commission cost envelope for the coming month?
Should my strategy focus on occupancy or average price?
6) Carefully analyze the pickups.
What did I take as reservations today, yesterday, for 5 days, for 7 days etc…?
Will the total reserved turnover compensate for everything that has been cancelled?
Is the booking process consistent with historical loadings?
7) Monitor the segmentation closely.
Who books when, what and at what price?
Which product segment produces the most?
Which segment is ahead of schedule?
8) Have accurate indicators.
Is my average price fair? Is the average price of Booking and Expedia comparable?
What do I “really” earn at the end of the month?
Have I taken into consideration the rooms offered or under construction in my calculation of the Average Price?
9) Have context & monitoring data.
Is there demand in my market?
Am I late or early compared to the market?
Is the price charged by my competitors consistent with my pricing policy?
10) Management of pricing & yield rules.
Be able to adjust BAR prices, promotions, restrictions, thresholds, open/close channels & room types as well as rate plans, room types.
Is my yield connected to my distribution?
Do I have a history of the strategies that have been applied?
BONUS: Successful implementation of these ten key points necessarily requires adequate resources, and therefore appropriate revenue management tools. Let’s bet, making yield goes beyond competitive intelligence (however advanced it may be): it’s a method, rigour and (good) tools that “really” help you to make the right decisions. AND THE MORE REAL TIME THEY ARE, CONNECTED TO THE DISTRIBUTION, THE MORE YOU EARN!
Discover more about the challenges of the yield management :