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Accredited Online College And University Programs
It is not unusual to grow indifferent toward your job. Lack of
stimulating work, low pay, and limited growth potential within
an organization are all excellent reasons to seek out a way to
make a change. The best way to realize your full...
From Basics To Mastery
For all of us, emotional intelligence encompasses five basic areas of mastery. They are:
- Knowing your feelings and using them to make life decisions you can live with.
- Being able to manage your emotional life without being hijacked by it...
Handling Redundancy
Why did you leave your last job? It’s a question that, following redundancy, many job applicants stumble around hopelessly with as they attempt to convince the interviewer that they wanted to leave when in fact they know that redundancy is more...
MBA. It Is More Than A Degree.
The Master of Business Administration is a postgraduate that is internationally recognized as a business management qualification. But it is more than an academic degree. A good mba is preparation for business management involving a combination of...
Open Source Teaching
Up until today, you may have missed one of the most exciting teaching revolutions that modern technology has provided. And as some of the best revolutions are, this one is free.
We're talking about LAMS - Learning Activity Management System.
The...
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A Definition Of Yield Management
Yield Management:
A yield management system, which can also be referred to as
revenue management, is a system that attempts to understand,
anticipate and then react to consumer behaviour in order to
maximise revenue/profit.
How Does Yield Management Work?
To acheive maximum revenue/profit, a yield management system
needs to have an understanding of what has happened before and
what is happening now; using this historical data to predict
what may then happen in the future. So the yield management
system will periodically review transactions that have occurred
between the consumer and the hotel. Other external information
is then fed into the yield management system and this can
include statistical data, events such as public holidays,
competitor price information, seasonal buying patterns, etc. A
predictive modeller then attempts to forecast the total demand
within a specific period for the services on offer by market
segment and price point.
In simple terms yield management tries to answer the question
"Given our operating constraints, what
is the best mix of
services for us to sell within a particular timeframe, so that
we generate the highest revenue?"
The process of yield management optimisation helps an
organisation to adjust its prices so that they meet the total
demand characteristics of its markets. In order to maximise the
revenue, prices can be determined by:
==> Service
==> Group of services
==> Market (consumer type or geographical)
==> A combination of the above
Yield management models are most effective where the service
being supplied is characterised as:
==> Capital intensive
==> Perishable (revenue is lost if the product/service is not
sold by a particular point in time)
and the demand side is characterised with:
==> Variability of demand
==> Variability of value
About the author:
Dominic Martin is the Marketing Manager for Data Track Communications
ltd, who are Europe's leading hotel guest telephony strategy
and Call Yield Management experts.
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