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Revenue Management … Yield Management
Revenue Management … Yield Management
CMH … 3rd Year
Liz Craig
Help Hotels + Hotel Groups – Internet Revenue
Who, What, When, What Price, Which Channel
Who to sell What to, When, At What Price Through Which Channel
Who – which customers
What - product, offer or services
When – at what time in the purchase cycle
What Price – how much should be charged
Which Channel – where does the customer purchase
Right product, offer, service Right customerRight timeRight priceRight channel
OBM – Optimum Business Mix Planning
Who … which customers
When – at what time in the purchase cycle
What Price – how much should be charged
Which Channel – where does the customer purchase
Core concepts – Supply + Demand
Demand > Supply = Maximum price
Demand < Supply = Discount price
Supply = Demand = Packaging + Conditions
Key Idea – use price to divert demand to excess capacity
Example – when you consume
RM – works best
Perishable commodity Fixed capacityFluctuation in demandCustomer price elasticityMarket driven pricingForecast demand patterns
Eiffel Exercise – Mission Maximize Demand
Customers – Who are they, when do they come… how do they get there?
Cannot change….. Hours of operationNumber of elevatorsSpeed of elevators
What Revenue Management is NOT
Computer Program
Sales & Promotion
Only about Pricing
Only about Guestrooms
Only 1 person’s job
Revenue Management …
Revenue Management … Revenue Maximization
Interested …?
