Revenue & Yield Management for Accommodation Providers
Common reasons preventing accommodation providers from using yield management and revenue management are cost, complexity and requirement of trained staff.
What is the difference between the two approaches and how can these obstacles be overcome?
What is Revenue Management?
Revenue Management applies data science and insights such as performance data, local market data, competitor rates, and other criteria to predict demand.
Free and affordable Revenue Management Tools
Beds24 and Expedia Group have partnered to give free access to Real-Time Pricing Data and Market Recovery Insights which can help rebound from the impact of the pandemic.
Our partners Pricelabs and RoomPriceGenie offer innovative, affordable and easy to use data driven revenue management solutions with seamless integrations to Beds24.
What is Yield Management?
Yield management uses price differentiation to sell the right room to the right guest at the right time and possibly at the highest price.
Common Yield Management strategies
- Standard pricing /rack rate
- Seasonal pricing
- Day of the week pricing e.g. weekend/ weekday
- Last minute rate
- Early bird rates
- Long stay discounts
- Promotional prices
- Refundable/non refundable prices
- Group or agent rates
To use these strategies you will need a PMS and Channel Manager like Beds24 which can handle pricing flexibly and can send them to all sales channels which support them.
Setting the right price at the right time
Increasing prices when demand is high, and offering discounts when demand is low is a good strategy to your revenue.
Beds24’s free built in Yield Optimizer can automatically adjust prices based on remaining availability and time before check-in. Prices can be adjusted up if demand is high or down if demand is low. Multiple rules can be created and will work together.