Yield management originated in the 1980s in the U.S. due to airline industry deregulation and has since expanded to other sectors. It is a strategy aimed at maximizing revenue through real-time demand forecasting and by offering services at optimal times and prices. The hotel industry specifically seeks to balance occupancy and average daily rates while accommodating various customer sensitivities to pricing.

1. Yield Management

2. The History Originated in the United States of America in the early part of the 1980’s. Was brought about by the deregularisation of the airline industry. Success went hand in hand with the development of Global Distribution Systems. Began to penetrate other sectors of activity in the 1990’s, first in the United States and then in Europe.

3. The Definition A strategy that enables the service industry to obtain optimum revenue through operations. A method based on real-time forecasting and on the demand for a product or service offered. A plan that provides the right service at the right time to the right customer at the right price.

4. Increase Occupancy Rate Increase ADR Yield Management ‘s objective is to Maximize revenue Objectives Meaning at the same time REVPAR

5. Many different combinations of Occupancy Rate and Average Daily Rate generate the identical revenue : (100 rooms hotel)

6. A strategy that enables to shift client’s demand to off-peak hours according to a consumer’s sensibility to price and the duration of the service involved. Companies must be able to “predict” high and low activity periods Segmentation between price-sensitive customers and price-insensitive clients

7. LIMITS OF RM Airlines only take into consideration Air Ticket Fare for revenue. Staff training Client’s satisfaction Chain’s image

8. New technologies serving decision makers

9. Business clients tend to book at the last minutes, like to contract fixed rates in function of the volume of nights, dislike to waste time looking for availabilities and best rates. Selection criteria N°1 remains location. Leisure clients are more price-sensitive, tend to book several months in advance. They spend more time to find the best offers. Situation Analysis Hotel Industry

10. To maximize hotel global revenues To satisfy all customers as far as possible Objectives Hotel Industry

11. Which elements shall you take into consideration to optimize hotel’s revenues ? Does the REVPAR reflects client’s revenues ? Answer for the top 4 segments Action Plan Hotel Industry

12. If discounting doesn’t work, what does ? Dynamic pricing Yield, harrow or hurray ? Restaurant revenue management Documents Hotel Industry