This blog discusses Yield and Rate Management. We have worked to simplify the steps so that the tasks mentioned here can be delegated.

For Yield Management, please ask your admin to add the following UDF.

Type: yield_window_of_intersest

Description: 4

Quarterly Activities

The following should be reviewed and adjusted every 3 months.

Make sure you have inventory and restrictions loaded 1 to 1 ½ years out

Verify Yield Management Goals.

Checkpoint period needs to be defined over here.

Hotel inventory synch

Verify Rate Management Rules

This should be checked periodically and modified as per market conditions and your goals. You can view the rules by navigating to Room Type details page.

Hotel inventory synch in California

 

 

Create a calendar of compression dates.

Print a calendar of compression dates. These dates should be checked in the weekly activities.

 

Weekly Activities

Verify Yield Management Progress at each check point.

yield-analysis

If goals are not met, then please consider one of the following. The following steps are also called the “demand generator” plan.

  • Increase marketing budget.
  • Add promotions on the OTA’s.
  • Reduce rates for the period of interest.

Verify Rate change triggers

Double check rates yield manager changed for the last review period. You can view this by navigating to Channel Manager –> Rate Change Triggers.
triggers

 

 

Check your Low Inventory Report.

You can view low inventory report either in your night audit email, or you can view it from FairCloud Reports section. The low inventory parameter is defined and can be configured via the PERCENTAGE_FOR_LOW_INVENTORY parameter in the UDF.

Following is the low inventory alert that is included in the night audit email.

low-inventory-audit

Following is the low inventory report and this is available in the Reports Module.

low-inventory-report

Based on you low inventory report, you can double check that the Rates on all channels have been updated successfully.

For the employees to view the reports module, please make sure that in the Employee Details page, the Reports Visible check box is selected.

reports-visible

 

Review comp set to spot if not competitive – too high or too low. If > 50% of comp have higher rate will change base.

Review inventory for next 21 days. If inventory is more than expected reduce base rates.

Check the next upcoming compression dates

Keep monitoring the booking curve for the compression dates. If the reservations are being picked slower than last year then follow the “demand generator” plan.

bookingcurve

 

 

You should also check the Occupancy Based Pricing Modules. To activate Occupancy Based Pricing please create the price change rules. You would also need to add the following UDF settings.

RATE_MANAGEMENT_TRIGGER=Y . [To see the rate management tool and create triggers]
PROCESS_RATE_MANAGEMENT_TRIGGER=Y