Yield Management Reading Packet

9504 WordsApr 7, 201339 Pages
The Basics of Yield Management Weld-management systems have boosted revenue at many properties, but these electronic tools are not always compatible with the operating atmosphere of a hotel. If you want to introduce yield management at your property, you may need to make some changes first by Sheryl E. Kimes YIELD MANAGEMENT is becoming part of the standard operating procedure for many hotels with sophisticated electronic property-management systems. Appropriately tailored to the hotels they serve, yield-management systems generally increase revenue and take much of the guesswork out of rooms-management decisions. However, installing a yield-management system can create problems if management does not lay the proper groundwork.…show more content…
business and pleasure travelers can be split easily into separate groups. The basic idea is that hotel managers will have different marketing plans for the different types of customers. Hoteliers would like to be able to sell these segments rooms tlmt best fit tbeir needs. In tbe case of pleasure travelers, lower-priced rooms that must be booked a certain length of time ahead may be most appropriate. With business travelers, higfier-priced rooms that have no time penalty may work best. Perishable inventory. Clearly, hotel rooms are a perishable inventory item. If the room is not sold one night, that room-night is lost forever, anti the hotel manager cannot put it into inventory for use at some otber time. Airlines and rental-car firms face similar problems. P r o d u c t sold in advance. Some transient hotels sell most of their rooms a few days in advance, but in some situations, reservations are made well in advance of the day desired. In the case of group sales, reservations may be made several years in advance. When the product is sold in advance, the manager is faced with uncertainty. Should a group that wants to pay a low rate be accepted, or should the manager wait to see if higher-paying cus- tomers will appear? How many super-saver rooms should be sold? Might someone who would pay a higher rate want to
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