II- ELEMENTS OF
YIELD MANAGEMENT
¨While developing a successful Yield Strategy, the following Elements are very
important:
¨ Group Room Sales
¨ Transient (FIT) Room
Sales
¨ Food and Beverage Activity
¨ Local and Area-wide Conventions
¨ Special Events
1. Group Room Sales:
¨Group
Booking Data Þ
Determines whether the Group blocks
already recorded in the Reservation File should be modified or not and adjusts expectations by reviewing the
Group’s Booking History
¨Group
Booking Pace Þ
Watches out for the Rate at which Group
Business is being booked (Consider Historical Trends)
¨Anticipated
Group Business Þ
Watches out for repetitive Group Patterns
and act accordingly in order to
forecast the Pressure on the Market, and hence adjust Selling Strategies
¨Group
Booking Lead-Time Þ Measures how far in advance of a stay Bookings are
made. This is very important in determining whether to accept an Additional
Group and at what Room Rate to book the New Group
¨Displacement
or Transient Business Þ Occurs when a Hotel accepts Group Business at the
Expense of Transient Guest. This might engender Profitability Problems and Bad
Reputation
2. Transient Room
Sales:
¨The Front Office Management shall monitor the Booking
Pace and Lead-Time of Transient Guests in order to understand how Current
Reservations compare with Historical and Anticipated Rates
3. Food and
Beverage Activities:
¨All local Food and Beverage Functions should be viewed
in light of the Potential for Booking Groups that need Meeting Space, Food and
Beverage Service, and Guest Rooms
4. Local and
Area-wide Activities:
¨Even when a Hotel is Not in the immediate Vicinity of a Convention, Transient Guests and
Smaller Groups displaced by the Convention may be referred to the Hotel (as an Overflow Facility) and this may
have a tremendous Impact on Hotel’s Revenue
5. Special Events:
¨In Special Events (Concerts, Festivals, and Sporting
Events), Hotels might decide to benefit from High Demand by restricting Room
Rate Discounts or requiring a Minimum Length of Stay
MANWAL