III- USING YIELD
MANAGEMENT:
1. Potential High
Demand Techniques:
·
Try to define the Right Mix of Market Segments in order to sell out the Highest Possible Room Rates
·
Monitor New Business Bookings and use these
changed Conditions to reassign Room Inventory (As Occupancy increases, consider
closing out Low Room Rates and
open them Only when Demand decreases)
·
Consider establishing a Minimum Number of Nights
per Stay
·
Select the Group that offers the Highest Total Revenue
·
Try to displace Price-sensitive Groups to Low
Demand Days
2. Potential Low
Demand Techniques:
·
Carefully design a flexible Rating System that
permits Sales Agents to offer lower
Rates under Certain Situations
·
Strive to accurately project expected Market Mix
·
Management shall closely monitor Group Bookings
and Trends in Transient Business Þ Do Not close off lower Rate and Market Segments arbitrarily
·
As Low Occupancy Periods become inevitable, open Lower Rate Categories,
solicit Price Sensitive Groups, promote
Corporate, Government, and other Special Discounts, and Develop New Rate Packages
·
Consider maintaining High Room Rates for Walk-in
Guests
·
A Non-Financial Technique involves upgrading
Guests to nicer Accommodations than they are entitled to by virtue of their
Room Rate
Þ In order to implement these Tactics, Management needs
to establish the Hurdle Rate
(The Lowest Rate for a Given Day)
below which it is impossible to sell any Room
MANWAL