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  • Be Wize
  • Hotel Online Marketing
  • Hotel Revenue Management
  • Online Hotel Distribution
  • Use data to set your hotel’s yield management strategy
    Vangelis Lagoutaris
    on 2 Σεπτεμβρίου, 2016

    Finding the ideal point of balance between occupancy and rates is critical for the hotel business. Many factors have to be taken under consideration that cannot really be predicted due to the high dependence of Tourism to the economic and social environment.

    Traditionally, hoteliers set their pricing policy based on figures of previous years and predictions based on various, yet not certain, factors; a practice that sometimes works but cannot really be creditable in the demanding environment of the contemporary hotel sector.

    There is crucial need for data that shows the actual potential of a property so as to assist the hotel management executives to take the correct decisions regarding yield management.

    Analyzing website visitors and comparing current reservations with previous periods is not enough. It is an indicator but it cannot give a complete picture so as to help hoteliers make the right hotel yield management decisions.

    Factors that affect pricing strategies

    In order to set a hotel’s yield management strategy, three important components are necessary: Current Occupancy and ADR, Last Years’ Reservations Data, Current Demand Data.

    Current Occupancy and Rate ratios can be easily accessed through the hotel’s Property Management System. With a few clicks one may get complete reports of the Average Daily Rate per period and Occupancy as well. Last years’ numbers should also be easily accessible through the PMS or any stats software that the property uses. But what about current demand? How can one acquire this information?

    Having access to website analytics cannot fulfill this need, since it only provides numbers of people visiting a website and their interaction with it – but not the actual dates of high or low demand. This is a task that should be completed by the hotel booking system of the hotel’s website in order to effectively track the number of potential guests that search for availability for each date.

    Use Bookwize’s Reporting System

    The Bookwize Booking System features a powerful set of reports that can seamlessly deliver the necessary information to the hotel revenue managers in order to assist them develop the most effective yield management strategy for their hotels.

    The Booking Window report helps hoteliers understand in a fast and easy way their reservations flow. Through both statistic tables and charts, Bookwize helps hotel revenue managers to easily compare the progressive changes on their hotels’ booking by both the booking and stay periods.

    Hotel Yield Management Strategy Reports - Booking Window

    The Demand Search Results report presents valuable information regarding the dates that your potential guests want to stay in your hotel. Therefore you can have access to your hotel’s actual day-by-day demand data!

    Hotel Yield Management Strategy Data - Demand Report

    Using Bookwize’s reporting system and combining the data that you receive from the specific reports, helps you build your hotel yield management strategy based not only in “predictions” but also in actual figures and thus make positive and credible managerial decisions.