DEMAND VS YIELD MANAGEMENT

DENIZ DORBEK Senior Director of Revenue Management EMEA

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ART BEHIND PROFIT MAXIMISATIONYield vs Demand Management

7 Key Pillars

Future of Revenue Management

Questions & Answers

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Questions &Answers

DEFINITION & CONCEPT Yield vs Demand Management

7 Key Pillars

Future of the Revenue Management

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ANTICIPATE AND

INFLUENCE CONSUMER BEHAVIOUR

MANAGERATE & COST

MAXIMISE REVENUE FROM A FIXED, TIME LIMITED RESOURCE

CONTROL INVENTORY

MANAGEREVENUE STREAMS

YIELD MANAGEMENT

DEMAND MANAGEMENT:

“Demand management is a planning methodology used to forecast, plan for and manage the demand for products and services.”

HOW IT WORKS?

LEARN FROM THE PAST

§ Capture, Record & Analyse the Data

§ Market Results

§ Year on Year Comparisons

§ Season Shifts / Dates

§ Booking Pace

§ Group Conversion /Lost Reasons

§ Empty Rooms vs Denials

§ Review Pricing & Policies

§ Unconstrained Demand

MANAGING THE PRESENT

§ Transient & Group Strategy

§ Managing Distribution & Rate Parity

§ Balanced Business Mix

§ Competitive Intelligence

§ Demand & Strategy Calendars

§ Inventory control & Pricing

§ Revenue Meetings

§ Accurate Forecasting

PLANNING FOR THE FUTURE

§ Pricing Structure per segment

§ Long Term Forecasting Ability

§ Product, Capacity & Configuration

§ Market & Destination Knowledge

§ Competitor Promotional Activities

§ S&M Promotion planning

§ Channel Management & Advertising

BEST PRACTICES & KEY INITIATIVES

7 Key Pillars $

Revenue Management EMEA Structure $

Future of the Revenue Management

Questions & Answers

Basics of Revenue Management

Segmentation and Guest Knowledge

Competitive Set & Benchmarking

Rate, Inventory and Pricing

Selling Strategy Setting

Monitoring & Evaluating

Forecasting & Overbooking

Training & Development

7 KEY PILLARS

1 ) SEGMENTATION AND GUEST KNOWLEDGE

Organic Sentiment

Guest Satisfaction

Contact Information

Transaction Data

Loyalty Insight Campaign

Engagement

Lead Source

Customer Research

Digital Engagement

360o

view

of t

he g

uest

Historical Data

Sentiment Data

Event organizing capacity

Location &Accessibility

Number of Rooms

Service Scale Leisure Facilities

2 ) COMPETETIVE SET & BENCHMARKING

Booking Lead Time

Length of Stay by market segment1st

DAY2nd

DAY3rd

DAY4th

DAY5th

DAYCheck In

Check Out

3)RATE&INVENTORYANDPRICING

4) SELLING STRATEGY SETTING

Macro & Micro Economics

Destination Management

Business Operations

Strategic Marketing

WORK AS A TEAM:

BRIDGE THE GAP BETWEENSALES & MARKETING

AND REVENUE MANAGEMENT

FORTHE MAXIMUM REVENUE GROWTH! SALES &

REVENUEMARKETING REVENUE

MANAGEMENT

1 2 3

BOOKING PACE PICK UPNO SHOW TURNOVER

CANCELLATIONS

5) MONITORING & EVALUATING

6) FORECACTING & OVERBOOKING

FUNDAMENTALS

Day PatternsAccurate Business on the BooksCompetition Rate AnalysisUnconstrained DemandCapacityLead TimesStrategy - Inventory ControlsDaily DetailsBooking StatusBooking Curves

7) TRAINING & DEVELOPMENT

LATEST TRENDS

INVENTORY PRICING & RATEMANAGEMENT

TOTAL HOTEL REVENUE

MAANGEMENT

FORECASTINGBENCHMARKING

SELLINGSTRATEGY SETTING

UNIQUE TOOLS & TECHNOLOGIES

$Revenue Management EMEA Structure

Questions & Answers

Basics of Revenue Management

7 Key Pillars $

Future of the Revenue Management

FUTURE OF REVENUE MANAGEMENT:

Availability of information

Technological Developments

Social & Local & Mobile

Healthy Channel Mix

Metasearch Channels

Training & Development

1 2 3 4 5 6

NEW TECHNOLOGIES

THE MORE DATA INTEGRATED INTO THE PLATFORM, THE MORE AI CAN UNDERSTAND HOW TO HELP OVERALL MARKETING AND OPERATIONS.

Save time and create effective selling strategies

IT WILL STILL BE THE HUMAN MINDS THAT MAKE THE DIFFRENCE..

Make the revenue management art more scientific

WHG EMEA REVENUE MANAGEMENT SERVICES

2015:2 Pilot hotels

2016:40

hotels +1900% increase

2017:70+

hotels* + 75%

increase

Basics of Revenue Management

7 Key Pillars $

Future of the Revenue Management

Questions & Answers

Q&ATHANK YOU!