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YIELD MANAGEMENT

DAY 3

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YIELD MANAGEMENT IS ...

KNOWING THE HOTEL S BUSINESS AND

CONTROLLING IT TO MAXIMIZE

REVENUE AND PROFITS.

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THIS SALES TECHNIQUE ...

CAN BE APPLIED TO A PROPERTYOF FIXED CAPACITY

WHOSE DEMAND IS CLEARLY

SEGMENTED WHOSE DEMAND IS VARIABLE

WHOSE PRODUCT IS PERISHABLE

WHOSE PRODUCT IS SOLD WELL INADVANCE

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BUT YIELD MANAGEMENT IS

ALSO ACCURATELY FORECASTING THE

DEMAND FOR A HOTEL TO KNOW : HOW MANY ROOMS TO OFFER

AT WHAT PRICE IN WHICH MARKET SEGMENT

ON WHAT DAY

IN ORDER TO MAXIMISE REVENUEAND PROFIT

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5 STEPS TO YIELD

MANAGEMENT

GATHER INFORMATION

ANALYZE DEMAND

FORECAST TAKE ACTION,

REFORECAST

EVALUATE ACTIONS

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1 : GATHER INFORMATION

ABOUT : CURRENT STATUS

HISTORICAL DATA

COMMUNITY HAPPENINGS COMPETITION

PACE

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STEP 2 : ANALYZE DEMAND

MEANS :

SORTING THROUGH INFORMATION

WHICH

HAS BEEN GATHERED!

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THE DEMAND ANALYSIS MEETING

SHOULD BE ATTENDED BY ...

GENERAL MANAGER

SALES DIRECTOR (AND STAFF) FRONT OFFICE MANAGER (AND STAFF)

RESERVATIONS MANAGER (AND STAFF)

FOOD AND BEVERAGE MANAGER

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WHY IS IT IMPORTANT TO

ANALYZE EACH DAY ? Everyday must be examined for its own

potential

To highlight critical dates of high and low

demand At each meeting a new month is reviewed

Yield is most effective when it is done before

any business is confirmed

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SO REMEMBER !!!

Yield Management involves everyone

The demand analysis team meets once a

day or once a week or at least once a

month

It is important to look at each day

individually and the effect of each high

demand day upon the day before and

after

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The 4Cs Strategy for YM

CALENDAR

CLOCK CAPACITY

COST

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STEP 3 : FORECAST

Forecasting can be defined as the process

of analysing the number of rooms which

are actually reserved in terms of all thefactors which might change that number in

order to predict the actual occupancy.

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WHEN DO WE HAVE TO

FORECAST ? FORECASTS ARE PRODUCED :

Daily for the next 4 days

weekly for the next week to 10 days

Monthly for the next 90 days

Monthly for the next 365 days

THIS CAN CHANGE FROM ONE HOTEL

TO THE OTHER!!! OF COURSE!

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FORECASTING TRANSIENT

OCCUPANCY ...

Understanding the behaviour of the

transient segment is crucial to

forecast with accuracy

WHAT ARE TRANSIENT

CUSTOMERS ?

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FORECASTING GROUPS

It is important to look at the group

business separately as they have trends

and pick up patterns of their own

WHAT ABOUT CUT-OFF DATES?

WHAT ARE CUT-OFF DATES?

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PREPARING A FORECAST

IT IS IMPORTANT TO

ANALYZE THE ACTUAL

RESERVATIONS WHICHARE ON THE BOOKS

THE SAME NUMBER OF

DAYS IN ADVANCE

EACH TIME !

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STEP 4 : TAKING ACTION

BUSINESS MUST BE CREATED:

HOW ?- BRAINSTORMING

- MAKING AN ACTION PLAN

- GIVING RESPONSABILITIES TO EACH

DEPARTEMENT

- ENSURE THAT EACH EMPLOYEE IS

AWARE OF THE PLAN AND THE

GOALS

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