| Yield Management: | | | | by: |
| A yield management system, which can also be | | | | |
| referred to as revenue management, is a system | | | | Service |
| that attempts to understand, anticipate and then | | | | Group of services |
| react to consumer behaviour in order to | | | | Market (consumer type or geographical) |
| maximise revenue/profit.How Does Yield | | | | A combination of the aboveYield management |
| Management Work?To acheive maximum | | | | models are most effective where the service |
| revenue/profit, a yield management system | | | | being supplied is characterised as: |
| needs to have an understanding of what has | | | | |
| happened before and what is happening now; | | | | Capital intensive |
| using this historical data to predict what may then | | | | Perishable (revenue is lost if the product/service |
| happen in the future. So the yield management | | | | is not sold by a particular point in time) |
| system will periodically review transactions that | | | | and the demand side is characterised with: |
| have occurred between the consumer and the | | | | |
| hotel. Other external information is then fed into | | | | Variability of demand |
| the yield management system and this can include | | | | Variability of valueDominic Martin is the Marketing |
| statistical data, events such as public holidays, | | | | Manager for Data Track Communications ltd, who |
| competitor price information, seasonal buying | | | | are Europe's leading hotel guest telephony |
| patterns, etc. A predictive modeller then attempts | | | | strategy and Call Yield Management experts. Data |
| to forecast the total demand within a specific | | | | Track's call yield management solutions enable |
| period for the services on offer by market | | | | hoteliers to measure, monitor and manage their |
| segment and price point.In simple terms yield | | | | communications revenue and cost, across their |
| management tries to answer the question "Given | | | | whole estate. The Company's unique |
| our operating constraints, what is the best mix of | | | | independence from technology and service |
| services for us to sell within a particular | | | | vendors ensures that the service works across |
| timeframe, so that we generate the highest | | | | mixed technology estates and does not require |
| revenue?"The process of yield management | | | | capital upgrades. Data Track Communications |
| optimisation helps an organisation to adjust its | | | | (DTC) can bridge any deficiencies in legacy |
| prices so that they meet the total demand | | | | systems by utilising their service technology, at no |
| characteristics of its markets. In order to | | | | additional cost. Thus hoteliers can improve |
| maximise the revenue, prices can be determined | | | | profitability without any capital expenditure. |