yield & revenue management - international … - matthias.pdf–efficient sales tools to drive...
TRANSCRIPT
Presentation NameSlide 2 of ZZ
Agenda
•What is Yield Management?
•The Yield Management Process
•Using Ungerboeck Software to Drive Yield Management
•Other New Developments
•Q & A
Presentation NameSlide 3 of ZZ
Yield Management Defined
•"Understanding, anticipating, and influencing customerbehavior in order to maximize profit contributions and/oreconomic impact from perishable fixed-cost resources.”
•Yield Management is an Iterative Process
Presentation NameSlide 4 of ZZ
Rooms/SeatsConsumer
Standard
Quantity
Cost
EventsCommercial
Custom
Quality
Impact
Presentation NameSlide 5 of ZZ
Yield Management Process – Core Steps
•Understanding Current Market Position & Demand
•Defining and Executing Marketing and Sales Strategies
•Setting, Meeting, & Exceeding Customer Expectations
•Accounting & Financial Analysis
•Reviewing, Refining, & Repeating Your Process
Presentation NameSlide 6 of ZZ
Understanding Current Market Position & Demand
• If you don’t know where you are, you can’t know where togo
•Focus around:
– Current & Forecasted Utilization
– Profitability
– Economic Impact
Presentation NameSlide 7 of ZZ
• By Space or Space Type
• By Event or Event Type
Ungerboeck Tools – Venue Utilization
Presentation NameSlide 11 of ZZ
Profitability – Daily Revenue & Cost Analysis
•What is most profitable and when?
Presentation NameSlide 12 of ZZ
Revenue & Profit Analysis by Event Type
•Which events are most profitable and when?
•Does “diversification” help or hurt?
Presentation NameSlide 13 of ZZ
Revenue Analysis – Searching for Seasonal Trends
•Where are the biggest areas for improvement?
Presentation NameSlide 15 of ZZ
Other Analysis Tools
•Best Customers
•Best Fit Customers Types
•Event Profit & Loss
•Event Budget vs. Actual
•Contract Pipeline
Presentation NameSlide 16 of ZZ
Defining and Executing Marketing & SalesStrategies
•How will we influence customer behavior generatedemand?
– Aim High… Really High – 100%+ Utilization
• “Aim for the moon. Even if you miss, you’re sure to landamong the stars.”
– Efficient sales tools to drive management reporting
– Efficient management tools to drive the sales team &optimize event mix
Presentation NameSlide 18 of ZZ
Management - Opportunity Pipeline & Sales Goals
•Reviewing pipelines & setting sales goals gets sales andmanagement on the same page
Presentation NameSlide 20 of ZZ
Management – Availability & Booking
•Quickly review demand by utilizing new generic spaces
Presentation NameSlide 21 of ZZ
Management – Availability & Booking
•Set demand indicators and communicate important infoto sales directly through the booking calendar
Presentation NameSlide 22 of ZZ
Sales Tools – Event Requirements & Valuation
•Preliminary Event Estimates by Service Types
Presentation NameSlide 23 of ZZ
Sales Tools – Valuation
•Valuation designed by Event Type & Spend Class
•Event Profitability By Service; Economic Impact
Presentation NameSlide 24 of ZZ
Sales Tools – Event Versioning – What If?
•Multiple Objectives– Maximum Yield (Profit Contribution)
– Client Budget Requirements
– Various Event Agendas
•Multiple Variables– Event Dates
– Event/Function Attendance
– Space Composition
– Function Schedule
– Event Requirements
– Price Lists
– Service Order Items
– Item Quantities
– Payment Terms
– Event/Function/Order Notes
Presentation NameSlide 25 of ZZ
Our Venue
Small Meeting Rooms
Air Wall
Solid Wall
Large Meeting Rooms
Venue Capacity: 250,000 ft2
4 Halls @ 50,000 ft2
1 Ballroom @ 12,000 ft2
8 Large Meeting Rooms @ 3,000 ft2
7 Small Meeting Rooms @ 2,000 ft2
5 Hotels @ 300 Rooms Each
Venue Capacity: 250,000 ft2
4 Halls @ 50,000 ft2
1 Ballroom @ 12,000 ft2
8 Large Meeting Rooms @ 3,000 ft2
7 Small Meeting Rooms @ 2,000 ft2
5 Hotels @ 300 Rooms Each
Presentation NameSlide 26 of ZZ
A) Engineering Conference & Tradeshow, High Spend, 650 Attendees; Status: Proposal
Dates: In: Fri 03/06/09 Event: Sat 03/07/09 – Tue 03/10/09 am Out: Tue 03/10/09 pm
Space: 2 Halls, 5 Large Meeting Rooms @ 3,000, Ballroom – Monday; $57,000 Net
Services: $95,000 Net
Hotel: 2,000 Room Nights, 600 Peak Nights
B) Religious Conference, Low Spend, 500 Attendees; Dates Firm; Status: Tentative
Dates: Sat 03/07/09 – Sun 03/08/09
Space: 6 Small Meeting Rooms, Ballroom; $8,000 Net
Services: $15,000 Net
Hotel: 350 Room Nights, 300 Peak Nights, 50% Double Occupancy
C) Corporate Seminar (Local Employer), High Spend, 300 Attendees; Status: Firm
Dates: Mon 03/09/09 – Wed 03/11/09
Space: 1 Large Meeting Room, 6 Small Meeting Rooms; $6,000 Net
Services: $25,000 Net
Hotel: 300 Room Nights, 100 Peak Nights
D) Corporate 100th Anniversary Celebration, High Spend, 1500 Attendees; Status:Proposal
Dates: In: Fri 03/06/09 pm Show: Sat 03/07/09 Out: Sun 03/08/09 am
Space: 1 Hall, 2 Small Meeting Rooms, Ballroom; $45,000 Net
Services: $45,000 Net
Hotel: 800 Room Nights, 800 Peak Nights
E) Italian Masters – Art Exhibition, Medium Spend, 20,000 Attendees; Status:Proposal
Dates: In: Wed 03/04/09 Show: Fri 03/06/09 – Sun 03/15/09 Out: Mon 03/16/09
Space: 1 Hall, 3 Large Meeting Rooms; $75,000 Net
Services: $70,000 Net
Hotel: 1200 Room Nights, 400 Peak Nights
So what's the problem?opportunity
Economic Impact:4 x Venue Profit ContributionPlus:High Spend: $400 x Room NightsMed. Spend: $300 x Room NightsLow Spend: $200 x Room Nights
Economic Impact:4 x Venue Profit ContributionPlus:High Spend: $400 x Room NightsMed. Spend: $300 x Room NightsLow Spend: $200 x Room Nights
Venue Capacity: 250,000 ft2
4 Halls @ 50,000 ft2
1 Ballroom @ 12,000 ft2
8 Large Meeting Rooms @ 3,000 ft2
7 Small Meeting Rooms @ 2,000 ft2
5 Hotels @ 300 Rooms Each
Venue Capacity: 250,000 ft2
4 Halls @ 50,000 ft2
1 Ballroom @ 12,000 ft2
8 Large Meeting Rooms @ 3,000 ft2
7 Small Meeting Rooms @ 2,000 ft2
5 Hotels @ 300 Rooms Each
Presentation NameSlide 27 of ZZ
Yield Optimization Schema
DemandEvents
ResourcesSpace
LodgingServices
AssumptionsCostYield
Activity
ConstraintsVenue Capacity
Event Mix
Business GoalCustom Formula(Profit ContributionEconomic ImpactAttendance …)
DemandEvents
ResourcesSpace
LodgingServices
AssumptionsCostYield
Activity
ConstraintsVenue Capacity
Event Mix
Business GoalCustom Formula(Profit ContributionEconomic ImpactAttendance …)
Optimization
Modeling Engine
CustomizedSpecifications
Optimization
Modeling Engine
CustomizedSpecifications
OptimalBookingSchedule
ResourceAssignments
OptimalBookingSchedule
ResourceAssignments
By USI ClientServices
By USI ClientServices
Modeling Constraints & Costs
• Global• Event
• Direct Cost• Customer Acceptance Cost
Presentation NameSlide 28 of ZZ
Management – The Yield Optimizer
•Economic Impact
•Profitability
•Custom Formula
Presentation NameSlide 29 of ZZ
Setting, Meeting, & Exceeding Expectations
• Impeccable service that adds real value to your customerand your customer’s customer is critical to drivingdemand
•Create new revenue streams with new & unexpectedservices
Presentation NameSlide 30 of ZZ
A New Service Level – Customer Collaboration
MeetingPlannersMeetingPlanners
ClientsClients
ExhibitorsExhibitorsExternal
Catering
External
Catering
SpeakersSpeakers
SuppliersSuppliersUngerboeck
EBMS
Presentation NameSlide 31 of ZZ
Collaboration & Information Sharing
•Send a link directly to an event to a client or serviceprovider
•Send a link to a client and allow them to review, commenton, or change information instead of exchanging emailsand faxes!
Presentation NameSlide 32 of ZZ
Increase Productivity. Increase Satisfaction.Increase Demand
•Focus your team on planning events, not paperwork
•Less stress for event coordinators & clients
•Save your client’s time
•Reduce last minute requests
•Become easier to do business with
Presentation NameSlide 33 of ZZ
New Revenue Opportunities
•Registration
•Speaker & Abstract Management
•Sponsorship - Electronic Signage
Presentation NameSlide 35 of ZZ
Accounting & Financial Analysis
• Invoicing
•Event Settlement
•General Accounting Distribution
Presentation NameSlide 37 of ZZ
Financial Analysis
•Event Profit & Loss
•Venue Profit & Loss
•Departmental Performance
Presentation NameSlide 38 of ZZ
Review, Refine, & Repeat
•Economies & customer needs are always changing.
•Yield management must be a constant process of analysis& adjustment to the market
Presentation NameSlide 39 of ZZ
•4 Easy Steps
1. Understand your supply & demand conditions
2. Develop corresponding pricing strategies
3. Implement marketing programs
4. Optimize choice of opportunities
•And Two Tough Ones:
5. Sell more than you can deliver
6. Then service them all impeccably!
So what's the problem?opportunity