Yield Management

How does it work?

The first step is to create a Yield Profile where you set either occupancy and/or time rules to alter rates.

For example, An Occupancy Yield Profile could be used to:

• Raise rates by 10% when occupancy is above 80%.
• Lower rates by 10% when occupancy is below 20%
• Offer a discounted Rate for bookings made 60 Days in advance.

Once the 'Yield Profile' has been built, choose which rates you want to apply to individual Agent Channels. You can add as many or as few rate plans as you like to each of your Yield Profiles. Easily view how Yielded rates are affecting your Agent Channels with a ‘Yield Grid’ that allows you to see how rates are being set, per Agent Channel, based on a calendar view. This tool, visually shows how rates are being affected to each Agent Channel.

Allocate to Agent Channels

Then, to get even more 'refined', you can allocate to which Agent Channels you want the Yield feature enabled. Thus, you could effect your TWIN rates to Booking.com and Expedia, but not effect the TWIN rate allocated to your front desk.

Yield Grid

Finally, in order to easily view how Yielded rates are affecting your Agent Channels, we have a 'Yield Grid' that allows you to see how rates are being set, per Agent Channel, based on a calendar view. This tool, when set next to the 'normal' Rate Grid', visually shows how rates are being affected to each Agent Channel. Note that the example below assumes that the Agent Channel has a 'Rate Loading' set in addition to the Yield, making the Rate first 'loaded' by 11% and then 'yielded' by the amount set in the Yield Profile.. Thus there are two modifying calculations being applied to the rate via this Agent Channel.

Tips and Best Practices

• Group Booking 'hard allocations' affect your occupancy, so be clear that allocating to Groups will affect your rates if 'Yielded' according to Occupancy. Some Groups cancel and this can have un-intended consequences on occupancy patterns.
• Rates can be 'Yielded' for either Time or Occupancy. If you just want Rates to rise or fall according to 'Time' (ie, 7 days prior to arrival) you can use the Yield Management Module to affect rates only based on the Time value, regardless of Occupancy. This makes the Yield Management Module a 'last minute' rate tool.
• Rate tracking can become complex, as both 'Rate Loading' and 'Yielding' can affect a Rate's price. This tool is best used by a Revenue Manager who understands and tracks Rates as a professional. It's for this reason that BookingCenter charges a monthly fee for the service, as our support staff often has to un-tangle questions relating to the various channels a rate is booked.
• Once a rate has been delivered to an Agent Channel (such as an OTA like Booking.com or Expedia), it can take up to an hour for the Yield feature to be turned 'off' and over-written with new rates, so be aware that not all OTAs process multiple rate updates immediately.
• Yield management affects only Rate pricing for the 'First x people' on 'occupancy rates' and the price for 'flat rates'. It does NOT affect pricing for 'additional adults/children' nor does it affect Minimum or Maximum Length of Stay values.
• When setting up Yield management you must choose either a flat rate yield, ie: $10 or a percentage yield, ie: 10% to increase or decrease your rates. You cannot mix the two paradigms.