Elements of Yield Management

1
Elements of Yield Management

• Developing a successful yield
• management strategy includes an
• analysis of
• 1) Group room sales
• Collection of
• Business booked (reservations)
• Have agents overbooked? Do they need all booked
  rooms? If so, delete unnecessary group rooms and
  sell rooms to other groups

2

• Group booking pace
• Develop information from historical data about
  the speed at which bookings are made
• Reservations expected but not yet made
• Regular groups which can be expected to book
• Booking Lead Time
• How long in advance are bookings being made. Are
  there any patterns? If patterns change how
  should hotel react? Increase marketing efforts?
  Discount prices?
• Displacement of transient Business
• Is it worthwhile booking groups thereby losing
  customers who pay higher room rates?
• What happens with displaced guests? Where did
  they come from? Will displaced guests return
  ?

3

• 2) Transient room sales
• Bookings nearer to the arrival
• date
• Analysis, based on historical data, of booking
  pace and lead time for bookings to compare
• current reservations with
• historical and anticipated trends
• Information will help to decide if actions need
  to be taken to increase prices or discounts .

4

• 3) Food and Beverage activities
• Impact of sales of one hotel service on decision
  to sell another.
• Discount hotel rooms to sell FB services or rent
  conference facilities?
• 4) Local and regional conventions
• demand analysis can assist in establishing rates.
• Note influence on booking trends Booking trends
  can indicate an activity elsewhere.
• 5) Special events
• Activities which increase demand through which
  the hotel can increase rates or extend minimum
  length of stay