Yield and Distribution Management - Saf
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Yield and Distribution Management Yield and Distribution Management For Icelandic Hoteliers and Hospitality Providers Reykjavik - Iceland March 23 rd 2010 In Conjunction with SAF - 2010
Transcript of Yield and Distribution Management - Saf
Reykjavik - Iceland
March 23rd 2010
Yield and Distribution ManagementYield and Distribution ManagementFor Icelandic Hoteliers and Hospitality Providers
Reykjavik - Iceland
March 23rd 2010
In Conjunction with SAF - 2010
Reykjavik - Iceland
March 23rd 2010
Today's Agenda Today's Agenda
Yield and Distribution Management – The 5 C’sHow do you apply it to your organisation tooptimise revenues & maximise channel reach?
Simple Yield & Revenue steps you can adoptup to more complex strategies
Morning Hoteliers Session
Understanding “Variable Rates” and “Fences”
Market Mix Metrics – The 4 Quadrants
Distribution Management and Online Channel Control
Afternoon Plenary Session
The Social Media RevolutionOn-line reputation, virtual presence and digital identity today are crucial points inthe business world
Communication 3.0 – The ability to thinkdifferently – Monitor and keep in touch
The culture of APP – Use theirs to build yours
Winter tourism opportunities in Iceland
Conclusions and next steps
Reykjavik - Iceland
March 23rd 2010
Established in April 1997Electronic Marketing, Distribution & Yield consultants to the travel industryProviding:
Creativity – innovative & targetedCapability - technical know-how, evaluation & technology watchService - convenience, empathy & commitmentConsistency - objectives, values & visionDiscipline - scheduling, cost control & management training
Time Communications GroupTime Communications Group
Reykjavik - Iceland
March 23rd 2010
How do you apply it toyour organisation to optimise
revenues and maximisechannel reach?
Hotel Yield Hotel Yield and Distribution Managementand Distribution Management
Reykjavik - Iceland
March 23rd 2010
Distribution is ChangingDistribution is ChangingCustomers are Buying via Multiple Shop Fronts TodayCustomers are Buying via Multiple Shop Fronts Today
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WALK-IN / LETTER / PHONE / TELEX / FAX
Reykjavik - Iceland
March 23rd 2010
A discipline
A culture
A way of doing business
What is Yield Management?What is Yield Management?
Reykjavik - Iceland
March 23rd 2010
What is Yield Management?What is Yield Management?
Yield Management is the umbrella term for a set of strategies that enable capacity-constrained service industries to realize
optimum revenue from operationsCentre for Hospitality Research Cornell University
Providing the right service to the right customer at the right time at the right price!
Reykjavik - Iceland
March 23rd 2010
The Strategic Levers of The Strategic Levers of Yield Management Yield Management –– The 5 CThe 5 C’’ss
CalendarCalendar
CapacityCapacity
ClockClock
ChannelChannel CostCost
Reykjavik - Iceland
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
Reykjavik - Iceland
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
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How does How does Yield Management Work?Yield Management Work?
How Could it Make Your Product More Profitable?How Could it Make Your Product More Profitable?
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Many of the major hotel chains now use Yield Management systems and practicesAmong the first was Marriott with others such as Hyatt and Radisson following suitSmaller hotel companies and independent hotels are still reluctant to invest in Yield Management Systems and practices, believing that their tried and tested methods are better
Who uses Yield Management?Who uses Yield Management?
Reykjavik - Iceland
March 23rd 2010
Hotel Yield Management is...Hotel Yield Management is...
1. A scientific approach to rate management
2. Revenue maximisation by forecasting demand
3. Setting of thresholds and target rates in each market segment
Reykjavik - Iceland
March 23rd 2010
A scientific approach to rate management
How?
By forecasting accurately we are able to ensure the right product is sold to the
right customer at the right time and in line with the hotels selling strategy
Hotel Yield Management 1Hotel Yield Management 1
Reykjavik - Iceland
March 23rd 2010
Revenue maximisation by forecasting demand
How?
Realising the best possible revenue from room reservations, whilst pro-actively managing the
risks that are associated with the fluidity of room demand
Hotel Yield Management 2Hotel Yield Management 2
Reykjavik - Iceland
March 23rd 2010
Setting of thresholds and target rates in each market segment
How?
Making the correct ‘yield’ decision to help deliver optimum returns to the property by achieving revenue and occupancy goals
Hotel Yield Management 3Hotel Yield Management 3
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March 23rd 2010
Pricing: RatesPricing: Rates
In Y.M. Systems, rates do not change, however, the availability of rates will changeObjective is to provide flexibility whilst maintaining simplicity
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A disciplined process thatassists in the optimisation of
Revenue, Occupancy and DistributionBut also takes into account differing variables
such as:
What is What is Yield and DistributionYield and DistributionManagement?Management?
Competition and Distribution Channel Control
Reykjavik - Iceland
March 23rd 2010
ROOM STOCK
RATEMANAGEMENT
INVENTORYCONTROL
DATACOLLECTION
REPORTING
OPERATIONSMANAGEMENT
MARKETANALYSIS
SELLINGSTRATEGY
YIELD&
DISTRIBUTIONMANAGEMENT
What is Yield and DistributionWhat is Yield and DistributionManagement?Management?
Reykjavik - Iceland
March 23rd 2010
The cycle can be thought of as having four components:
RATE MANAGEMENTDATA COLLECTIONOPERATIONS MANAGEMENTSELLING STRATEGY
Yield & Distribution CycleYield & Distribution Cycle
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March 23rd 2010
Distribution: What to Look forDistribution: What to Look for
Ensure rates are common and consistent throughout distribution channels
Customer and agent understandingEnsure availability is consistent throughout all channels
Integrity to guests
Reykjavik - Iceland
March 23rd 2010
Hotel Business Mix MetricsHotel Business Mix Metrics
Business / Corporate Travel
Leisure / Vacation Travel
100% Hotel Market Mix
Transient / Individual Travel
Group / Volume Travel
Reykjavik - Iceland
March 23rd 2010
Leisure / Vacation Travel
1) Transient / Business Travel
2) M.I.C.E / Business Travel
3) Transient / LeisureTravel
4) Group / LeisureTravel
Transient / Individual Travel
Group / Volume Travel
Business TravelLeisure Travel
Hotel Business Mix MetricsHotel Business Mix MetricsThe 4 Quadrants
Reykjavik - Iceland
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Yield & Distribution ManagementYield & Distribution ManagementFor Icelandic Hoteliers & Hospitality Providers
Reykjavik – Iceland - March 23rd 2010
[email protected]@timecg.com
