Revenue & Yield Management
Revenue and Yield Management, combined, are the key drivers to maximise accommodation profitability. We take our combined experience applying it to your business with a customised approach. We understand that every property and every client is unique and deserves an individual plan for success.
Revenue management forms the foundation of any successful accommodation business. Without a clear strategy, you lack the visibility needed to identify opportunities to maximise revenue – or even see how you're tracking against your competitors. Your dedicated revenue manager will assist you in looking at current market demand, generating reports and setting rate strategy rules, keeping a pulse on market conditions to track the right metrics focussing on the future.
Yield management is a pivotal pricing strategy for today’s accommodation business. We look far beyond OCC (Occupancy) and ADR (Average Daily Rate) to other measures such as ALOS (Average Length of Stay) and RevPAR (Revenue Per Available Room). It is important to match guest behaviour to conversion. The key is to use your data to understand your customers and their sensitivity to pricing and combine that information with dynamic pricing strategies. Our team can advise and implement the optimal yield strategy to maximise revenue.
AUDIT, ANALYSE & DEVELOP
Hemisphere will audit, analyse & develop an overall revenue & rate strategy tailored to your property.
Benchmark and compare the pricing strategies of the main competitors and the historical performance of the hotel.
The study will look at a year period: day-by-day pricing by the length of stay. The benchmarking will show how the property is priced competitively and create or revise the pricing grid.
Evaluate the distribution of the main competitors: online and offline. The audit will look at promotion management and length of stay pricing per channel.
The study will also look at the distribution management of the property, inventory availability management and rates availability management, in periods of low to high demand.
We look at the competitive strengths and weaknesses of the property and present an action plan, with a primary focus to enhance existing distribution channels and contract the right new ones, where opportunity exists.
PLANNING & IMPLEMENTATION
Upon completion of the benchmarking studies, Hemisphere will revise existing or develop new pricing and distribution strategies to stimulate demand.
Both public prices and negotiated rates with multiple lengths of stay will be assessed and recommended.
Pricing will be recommended per period of demand: low to high periods.
Negotiated & opaque rates will be reviewed in relation to the production and relative accounts.
We develop rate strategies for a 13-month horizon incorporating pricing strategies by area category groupings, day by day (by day of week), per channels of distribution, yield strategies with restrictions on peak periods and promotional strategies in low demand periods and identification of opportunities to drive business to property direct website.
Management of what price/offer is available on which distribution channel.
Rate parity across all channels (the same rate on all channels).
Rate integrity across all channels & markets, aligned with our yield strategies (a structure that offers sufficient value to each segment, without reducing our overall revenue).
Automation and process enhancement, through effective use of the available technology, to automate as much of the process as possible.
Identify possible sources of business or channels, not currently being leveraged, such as new OTAs, group buying sites or associations member offers.