Front Office Yield Management, Part II

By Sumit Manwal, Founder, Hospitality Vacancy

This is part two of the yield management series.

Studying hotel management or starting your first hotel job? Create your free candidate profile on Hospitality Vacancy and browse hotel jobs by department while you learn.

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

FAQ

What is ADR?

Average daily rate: rooms revenue divided by rooms sold.

Your next step

• Students and hotel professionals: Create your free candidate profile on Hospitality Vacancy and browse the latest hotel jobs.
• Want personal guidance? Book a Hotel Career Guidance Call (30 min) and we will plan your next step together.
• Hotels hiring: Register as an employer on Hospitality Vacancy.

Related reading on this blog

• Front Office Yield Management, Part III
• Front Office Yield Management, Part I: The Basics
• Front Office Yield Management: Key Points and Series Guide

---

About the Author

Sumit Manwal is the founder of Hospitality Vacancy (since 2017) and has 20+ years of experience in hospitality. He received the "Excellence in Hospitality Sector of Uttarakhand" award, presented by Shri Dhan Singh Rawat ji (January 2023), and the Dainik Jagran inext Uttarakhand Ratan Samman for Excellence in Hospitality & Education, presented by Shri Bhagat Singh Koshyari ji (2023). He helps hotels build reliable teams and professionals grow their careers.

📧 Contact: manwal@hospitalityvacancy.com | 🔗 LinkedIn