In the hospitality industry, yield management refers to all of the ways you price your products so that you can make more money with the same resources, by selling to the right type of guest at the right time.
As a small accommodation provider, here’s what you need to know.
With hotels, any room left unsold is lost revenue. Yield management is about making sure those rooms are filled in the most profitable way possible. You will sell the right room to the right market segment at different rates under various circumstances.
Yield management is based on the theory of supply and demand: guests will pay different prices for the same thing, depending on a variety of factors. Therefore, you change your rates accordingly to get more incremental revenue.
Without using yield management strategies, you miss out on the opportunity to get more bookings, offer competitive rates and promotions, get more revenue per booking, and forecast the upcoming booking season.
To get more profit, you need to sell enough rooms to cover your fixed operating costs, then sell the remaining rooms at higher rates to maximise revenue and profits.
Many different pricing strategies are used to manage yield effectively:
This is when you have different rates depending on various factors, like…
This is when you have different rates depending on popular and unpopular times, like…
In the meantime, watch our on-demand revenue webinar to get all the tips:
You can also download our free ebook:
Sign up to our blog and receive regular updates on the content you're intoSign up now
Send this to a friend