Yield management is trendy, and it’s good thing because it’s useful!
But let’s face it: a revenue management strategy for a hotel or a campsite cannot be improvised.
It must observe certain codes if we want it to be effective and relevant.
What are the secrets to a successful yield management strategy? Step 2…
If the objective of any hotel owner remains to optimize his or her management, the realization of this objective undoubtedly requires a rigorous analysis & monitoring of his or her activity. Therefore, through a Revenue management strategy, decisions will be made that will be translated into actions (pricing, restrictions, etc.). And for which it is necessary to measure the ROI.
Sometimes it’s puzzling because the steps in this process are often asynchronous… What makes them ineffective… Let me explain.
Imagine ourselves as a hotel manager or a revenue manager of a hotel group. To carry out my yield analysis I need some data such as daily “Pickup” data for the current week, the next week, the current month, the next months etc.
When I analyse my pickups, I realize that I’m late for Sundays.
In the process I decided to boost them, in yielding breakfast. I vary its price on the fly by increasing it from 12 to 1 euros for example. Once the decision is made, I would like to turn it into action.
The only problem : I will have to comply with the specificities of my PMS or Channel Manager or even OTAs, depending on where I manage my pricing plans. To carry out my action, as I have decided, will not be easy.
This will affect the fluidity of the process.
Moreover, yield analysis is often based on data that is already obsolete at the time of decision-making.
Starting from our previous data example, I notice when I arrive in the morning that there is a strong pickup for a given date, coming from a channel whose pricing is dynamic. I then make the decision to raise prices. But by the time the decision was translated into action, the initial parameters had changed, making my decision null and void.
Conclusion: The simpler, more grouped & reactive the “Decision-Action” couple is, the more likely it is that your hotel or campsite will succeed in its yield strategy.