Introduction To Yield Management by Aina Sukor

What is Yield Management? 🙄

ainamuhd229 — 2021-04-04 06:18:18 UTC

A yield management system or also known as revenue management is a system that observes, predicts, and
influencing consumer behavior in order to level up revenue or profit from a fixed, time-limited resource.

In other words, yield management uses strategic control of inventory to sell the right product to the right consumer at the perfect time for the right price.

Yield management has a more narrow focus and is concerned only with the selling price and the volume of sales so that the best possible revenue yield can be achieved.

For example, the price of room reservations is varies based on the background of the customer or from the result of the forecasting before.

"The purpose of the business is to create and keep a customers".

ainamuhd229 — 2021-04-04 06:19:35 UTC

-Peter Drucker

How Does Yield Management Works? 🤔

ainamuhd229 — 2021-04-04 06:20:32 UTC

In order for yield management to works, they need to discover of what has happened before and the current situation by using historical data so they can also predict what will happen in the future.

The basic concept behind yield management is that certain fixed, time-limited resources, such as hotel rooms, can be sold for different prices, based on the time of year, the level of demand, the number of rooms already sold and a wide range of external factors besides.

The same hotel room can be sold to two different customers for entirely different prices, because of the number of variables involved in the process. Yield management strategies take a data-driven approach to ensuring pricing is adjusted in order to maximize business results.

How to Keep Customers?

ainamuhd229 — 2021-04-07 14:57:40 UTC

Yield Management Purpose

ainamuhd229 — 2021-04-07 15:02:12 UTC

To achieve inventory or capacity, demand and price by maximizing revenue such as:

1. Pricing
Must decide how to price the product.
Examples: on foods, services, room etc.

2. Inventory Allocation
What to put on a shelf to attract customers.
Examples: the best foods or top seller items on the menu

3. Selling Strategy
On how to sell the products to gain customers.
Examples: By using social media, ads or posters to promotes.

In essence, to maximize revenue or yield, the process of designate the right style of competency to the right customer at the right price.

Where does Yield Management Work?

ainamuhd229 — 2021-04-07 15:08:35 UTC

ainamuhd229 — 2021-04-07 15:09:36 UTC

When airline competition increased, they tried to operate their planes as efficiently as possible after isolationism in the late of 1970s.

In airlines, yield management is concerned with selling the right seat to the right customer at the right price so as to maximize yield.

As a way to increase competitive advantage and increase revenue, yield management was one of the methods developed.

ainamuhd229 — 2021-04-07 15:16:58 UTC

By communications

Build a relationship with customers, make use of positive social proof and make attempt at something.

By selling

Supply them with the knowledge it takes to make the right purchase decision and shower them with words that they love to hear.

By reciprocity

Make use of surprise reciprocity, make it personal and alert on negligible budget.

By support

Using the right platform, flatter the customers and get to know your customers. Making it shared effort together and the qualities one are the speeds.

By loyalty program

Choose the potential customer to be your VIPs

Revenue Management

sofiamohdnor98 — 2021-04-07 16:15:08 UTC

The process of the revenue management is actually the act of skillfully, carefully, tactfully managing, controlling and directing capacity and sources of income given the constraints of supply and demands.

Revenue managements can be divided into :-

Economic

The concepts covered include markets, budget, shortage and flexibility.

Marketing

This concept included 4P of marketing which is product, price, place and promotion.

Psychology

To understand the marketing of psychology for example to study what influences the customer to choose restaurant A rather than restaurant B.

Finance

To understand the value of the earning for the past and current and the fund policies.

Strategic management

The hotel must develop goals, objectives and strategic to achieve the strategic management plan.

History

Revenue manager must do some history research of the hotel background to predict the success of the hotel.

How to create a customer? 👩‍🦱 👨‍🦱

syarafinasara98 — 2021-04-07 16:37:34 UTC

Make sure that the guest are fully aware on what we will doing for them so that they will see the service/product they obtain.
Give them hand-written notes frequently so they will be feel appreciate.
Make sure any conversation or anything you know about them as a personal.
Keep on your mind of any their special dates so they will feel remembered.

Definition of revenue management through the four corner of the world

sofiamohdnor98 — 2021-04-07 16:53:40 UTC

Revenue - entry or the origin of the interest
Management - have a good soft skill that include communication, understanding and consideration.
Add capacity - the number of the slot that can be filled.
Supply - particular product or service which make the agent are willing to buy and sell at any given price.
Demand - particular product or service which make the customer are willing to buy and sell at any given price.

Conclusion, all the five elements define the meaning of the revenue management.