Yield ManageMent definition
Yield management, also known as revenue management, is the process of understanding,
anticipating and influencing consumer behavior in order to maximize revenue or profits from
a fixed, perishable resource (such as airline seats or hotel room reservations).
At the beginning it was used by airlines, hotels and car rentals now also in other industries,
such as hairdressers, theaters, cinemas and shipping.
(Source: www.wikipedia.com )
The science of prices demand for the optimization in operating revenue.
Electronic booking channels, such as booking, HRS, Hotel.de, etc. or
electronic travelagencies databases (GDS) like Amadeus, Sabre, Galileo and Worldspan.
Type of Business: LTD
Your Channel-Yield- Location: Bern / Switzerland
Management Partner Office: Laupenstrasse 6
1 minute walk from the railway station
(Bachelor of Law), Yield Manager and Customer Support
Chief Financial Officer
(Bachelor of Science in Business Administration),
Yield Manager and Customer Support
(Master in Computer Science), Technical Officer
(ETH Informatik Ingenieur), Chief Technical Officer
(dipl. Hotelier HF), Sales Manager
(Master of Business Administration), Marketing-Manager
International Sales and Customer Support
Here you see the graphic presentation of the sequence of our «Channel-Yield Management» services.
In the following pages the various points of the graph will be presented and the strategy of Hotelpartner explained.
(1) interface PMs
Connections to the Front Office program
The Front Office Program (Protel / Fidelio /
Hogatex etc.) sends automatically every 5-15
minutes, during 12 months, the updated occup-
ancy of each room category, so that Hotelpartner
knows the number of rooms still to be sold in
each category and this information regarding the
relative demand of each day, can be seen as a
first tendency, and thus the demand is already
Advantage over the competition
All the traditional channel management systems such as Rate Tiger, Channelrush, TravelCLICK, Channel Manager, Ezyield, etc.
have no direct connection to the front-office program.
Thus, it is not possible to sell the exact number of rooms represented in the Channel Market, therefore the booking to the *last
room availability is not guaranteed.
*Last room availability
Through the last-room availability there is already an increase in sales as the latest information on accommodation availability is accessible as soon as
there is a cancellation it is straight away deleted in the front office and directly rebooked in the channel market
Price decision: Endkonsumen
right Price at the right tiMe
The interplay of different factors determine the size of the
demand for each day, week and months.
Here are the most important factors briefly described.
Events happening in the same region or village.
Tourist, economic and perhaps even political events taking
Hotelsoftware Holiday periods, an international calendar of school holidays,
winter and summer destinations, distinctive range of destina-
Exhibitions and Fairs Calendar:
Exhibition calendar of the city
Concerts, political or sporting large events, conferences, other
kinds of events, etc.
Experience of the past:
Analysis of the past, average prices of different days, weeks
and months over past years
Instantaneous utilization in terms of different remote data:
• How long is it until the day of arrival?
• For which day is it possible, a short term demand analysis:
first survey, check the booking window 1-2 weeks prior to
arrival (e.g highseason) or previous months in adavance e.g
Easter, Christmas etc
right Price at the right tiMe
Holiday Hotels City Hotels Length of stay:
Seasons *** ** How long should or must the guest stay, how should the reserva-
tion gaps sold better: For example, on weekends or during exhibi-
Sensitive Data ** **
tions periods, no bookings under 3 days minimum possible stay.
Fair Dates * ***
Major Events ** *** Prices of competitors:
Price structure of other hotels in the same town or place. Price’s
Experience of the past ** **
analysis and observation of its development on the online market
Current occupancy *** *** on different days. How is the occupancy on the entire city or the
Lengh of stay *** * position on the different channels on different days in the past,
present and future.
Prices of competitors ** ***
* less important
Now you see the factors mentioned above in relation to their im-
** important portance for the pricing decision and the price in relation to what
*** very important the city or holiday resort hotel can offer.
In the holiday hotels is the length of stay and the season very important, so Hotelpartner works with strategic tools in the
interest of the revenue’s optimization and better occupancy distribution. Through dynamic settings such as length of stay
(minimum stay) and with restrictions such as close to arrival or close to departure etc. Hotelpartner manages centrally all the
channels in real time.
In the city hotels is the monitoring and observation of hotel prices within the same region and city very crucial indeed.
Therefore Hotelpartner, using a specially developed technology, supervises systematically and continuously, (7 days per week
/ 365 days per year) the development of the price structure in the hotels on the various channels and the pressure on certain
single days of strong demand.
coMPared to coMPetitors
1. Important advantage 2. Important advantage
Present and Future vs. Past Individuality of the hotel and the location.
In comparison to traditional yield management programs HotelPartner optimizes individual pricing strategy of your
such as IDEAS,Active Metrics and Optim, Hotelpartner hotel and is very targeted to the specific needs of each hotel.
analyzes not only the Past (PMS History) but above all the Price parameters and pricing rules are defined together
present information and the future (permanent market ob- with the hotelier and tailored according to the location and
servation of Booking, HRS, etc.) and not only the position of configuration of the hotel. This allows any hotel, whether
their own hotels but the entire market, (price,capacity of the a city hotel or a holiday hotel to better promote his own
city,destination). potential and not to miss any opportunity in the framework
This enables the hotel to be very flexible to the current of its possibilities and to choose the best possible channel
situation of the market and to respond to channels changing management.
market without taking any risk such as cyclical changes,
prices changing behaviour of competitors etc. In the next page we show how HotelPartner Yield Channel
Management Technology is connected with the online mar-
Furthermore, even irrational pricing strategies of competing ket channels and how we publish price changes in real time
hotels located in the same place are always observed and on each channel.
considered in the decision of the daily price.
(2) channels uPdate
Once the relevant market price is defined it is updated
in all the channels. Also other changes of rules and re-
gulations on the length of stay (Minimum Stay) or other
restrictions are centrally carried out on all channels.
Important: The availability of each room is updated
Hotelsoftware every 5-15 minutes with the front office program (Fidelio
/ Protel / Hogatex etc.)
The pricing decisions is due to the different price para-
meters and to the market monitoring, the front office
system needs to update the permanent occupancy,
prices and availability of all rooms every 5-15 minutes
with all the channels. For this reason, Hotelpartner de-
veloped several interfaces and connections to the front
office program and to all channels.
Advantage over the competition:
By providing direct electronic connection from the channels to the hotel’s front office program, Hotelpartner can accurately
check the room occupancy and through the channels sell to the last available room (last room availability). Moreover, the cen-
tral management of all channels, can strictly implement the rate-parity.
Hotelpartner has always the same price on every channel. For all channels, it’s part of the condition, that each channel is being
charged with the same price (Best Available Rate).
Many channels investigate now automatically the prices of other channels according to the contract conditions.
Due to the strict rate parity conflicts can be avoided.
5% commission on net sales Hotelpartner’s commission is not a booking commission
and should not be added to the commission of Booking.com,
Total turnover of the hotel management partner channels HRS etc. but seen as a cost model for an important service.
minus commissions channels = NET channel sales What we assure is that we give the hotel, at any given time,
a maximum effort, with the aim to increase the hotel’s sales,
Hotel Partner charges 5% Commission through electronic channels and optimize the market de-
on the NET channel sales mand.
Important Info: The question is therefore:
In the interest of the hotel and the hotel rate parity, Ho- How high are the increased sales through Hotelpartner’s
telpartner also manages the booking mask of the hotel’s know-how being generated and how many bookings have
website. On the direct bookings via the hotel website not been generated and thereby given to other hotels in the
Hotelpartner charges no commission from the principle that same place/city?
direct bookings cannot be charged.
Advantage over competitors:
In comparison with other yield management systems (Ideas,
Active Metrics, Optims etc.) or channel management pro-
grams such as Rate Tiger, Channelrush, EZyield
etc. Hotelpartner operates completely success-oriented.
Unlike other providers that rent the usage of a software
based on a monthly rent, Hotelpartner’s business is not
based on the income of the monthly rent but on the inten-
sive employment and responsibility of the channel sales
increase, 7 days a week / 365 days a year.
exaMPles in figures
Example 1: Example 3:
3-star city hotel (42 rooms) 3-star hotel (25 rooms)
Channel turnover managed by Hotelpartner Online channels turnover managed by Hotelpartner
2007: 414’862 2007: 64’201
2008: 688’112 2008: 111’738
Increase in percentage: 65% Increase in percentage: 74%
Online turnover as a percentage to the total hotel turnover 1. Quarter 2008: 48’234
2008: 39% 1. Quarter 2009: 53’495
Increase in percentage of the hotel total turnover Increase in percentage: 10%
Channel Turnover The figures correspond to actual transactions, Hotelpartner
1. Quarter 2008: 167’050 in all three examples substantially increased the channels
1. Quarter 2009: 177’994 turnover.
Increase in percent: 6.55%
In Example 1 and 3 Hotelpartner business results significant-
Example 2: ly improve. In case 2 the comparison between the channels
4-star city hotel (100 rooms) sales managed by the hotel (2007) and the sales managed
Turnover on Booking.com, HRS, Hotel.de and Expedia by Hotelpartner (2008) is really astonishing.
2007 managed by the hotel: 165’902 In all three cases, the figures of the 1st Quarter of 2009
2008 managed by Hotelpartner: 512’713 compared to the year 2008 have increased, although the
Increase in percent: 209% number of overnight stays in the hotels have declined.
1. Quarter 2008: 117’685
1. Quarter 2009: 126’551 Conclusion 2:
Increase in percent: 7.5% So far, Hotelpartner with all his customers, improved their
turnover regardless of the location of the hotel. The incre-
ase in turnover happens because of higher average prices
on days of high demand and higher booking of rooms by a
lower price on days of low demand through an intensive and
daily monitoring of all the channels.
The bookings are via fax or email directly from the channel to
the hotel and by the reception into the front office program.
This has a direct updating of the room availability on the chan-
nels and as soon as the defined factors are met, such as the
occupancy of the hotel, time of arrival, the market price, length
of stay, etc., a price change, or a modification of the restrictions
such as minimum length of stay, and other activities will occur.
Hotelsoftware Advantage over the competition:
Certain front-office systems can be completely integrated, so
that in the future bookings will be automatically registered into
the front-office equipment.
Due to this you can save on administrative resources, like boo-
kings registered by hand, employees could be devoted to more
meaningful guest orientated activities.
Hotelpartner can also analyze a single channel, if you wish, so
that the the booking’s overview is visible on a centralized sys-
tem for the control of guest’s informations and
Due to the central archiving of all bookings, statistical reports
can be generated for analysis of average prices, utilization,
length of stay, demand on certain days etc.
Hotelpartner through this analysis can judge better the
demand’s development in the future to come.
Point 1: Connection to front office program
• Last Room availability: Sales to the last free room
Endkonsument effective capacity in real time
• Booking of
• Work with as many types of rooms with no additional administrative work,
Hotelsoftware representative sale of each room category and hotels
Hotelsoftware Price decision
Price decision is the interplay of many factors: capacity of the hotel, size of the city,
length of stay, competitors’ rates, events, congresses and season etc.
Point 2: Updated Channels
• Price decisions and restrictions such as minimum stay, close to arrival,
etc will be centralized and sent through an electronic
connection to the different channels.
• The effective capacity of the different room categories will be transmitted in 5-15
minutes on all the different channels
Point 3: Bookings to the front office program
• Reservations provided by the different channels are sent to the hotel and into
their front office
• Statistical evaluations about the bookings, sales and figures can be generated
Each customer is a reference.
Our customers are glad to share firsthand their satisfaction.
• Hotel Bern (Bern)
• Hotel Sternen Muri (Bern)
• Hotel Continental (Bern)
• Hotel Linde Stettlen (Bern)
• Hotel Glärnischhof (Zurich)
• Califonia House (Zurich)
• Hotel Falken (Lucerne)
• Hotel Schloss Binningen (Basel)
• Hotel Kolbeck (Vienna)
• Hotel Rothensteiner (Vienna)
• Hotel Urania (Vienna)
• Hotel Vienna (Vienna)
• Quartier 24 (Vienna)
• Ferienart Resort & Spa (Saas-Fee)
• Hotel du Glacier (Saas-Fee)
• Hotel Bergheimat (Saas-Fee)
• Hotel Römerhof (Leukerbad)
We thank you for your attention and for your interest.
We would be happy to visit you in your hotel for a personal interview.
Contact Oliver Zurwerra: email@example.com
Last but not least our team would still like to have the opportunity
to improve your turnover and we leave you with our motto
Be part of our Success