Yield Management in terms of the accommodation industry is the practice of setting room rates to increase profitability. Practically speaking it involves selling the maximum number of rooms at the highest possible price. This practice is otherwise known as ‘yielding’.
How is it Calculated?
In a recent Tourism Queensland video, the experts explain simply that Yield = The difference between your outgoing expenses and your incoming revenue.
Therefore, yield management is the process of taking into account a number of internal and external factors such as supply and demand and developing a strategy to increase profit.
To effectively manage yield, you need to close the gap between your current revenue and your potential revenue.
Yield Management is can be very labor intensive and is often carried out by specialists that keep an eye on supply and demand – Revenue Managers. However, such specialists are rarely affordable for independent hotel operators.
Allotz Autopilot is channel management software for hotels that has an integrated and automated yield management system that operates in real time to maximize yield. It even adjusts rates automatically across all the major OTAs and GDS!
Allotz Autopilot is perfect for independent operators, as it takes the place of a Revenue Manager. Plus it operates in complete autopilot. This means that all the calculations to figure out the best rates are done for you for maximum occupancy/profit and adjusts those rates in the OTAs and GDS automatically.
With Allotz Autopilot, Yield Management is now well within your reach.