After a few weeks of silence, our developers surprise us with a new release focusing on yield management. In addition to this essential tool for revenue optimization, this release also includes the integration of Hotelbeds on Zak and other useful features. We will show them at the end of this article. But first we would like to explain what a yield management software is and why it is essential for every property.
What a Yield Management for hotels is?
Yield means production, so a yield management software is an automated productivity control system. A nesting technique originally used by airlines to optimize fixed costs: an airplane flies with either 50% or 100% passengers. By creating flexible rules to sell all seats even at reduced prices, fixed costs were lowered and profits increased.
Let’s try to apply this same model to a hotel and that’s it!
Yield Management for the hotel industry is nothing more than a control system that can predict the booking window, through prices and availability, in the various booking channels. So, while you relax, the system optimizes rooms and rates for you.
How the Yield Management software works?
Have you ever heard of Revenue Management? The right price, at the right time, to the right customer. So what is the difference between Revenue Management and Yield Management?
Easy: Revenue Management studies the key metrics of your business and optimizes your revenue to increase your profit. By analyzing reports based on chosen KPIs, you can use Yield Management integrated with your PMS to set distribution rules such as Early Bird for early bookers or Last Minute for last-minute bookers. Or Sales Speed to adjust prices according to how fast your property sells.
For example, you may realize that in a specific period or a specific target is particularly interested in a room type; with the yield management tool you can adjust demand to supply in a flexible and automatic way.
Hotel forecasting is a demand and revenue forecast based on reservations reports, on market and on your competitors.It is generally managed by professionals, called revenue managers, who use a hotel data control system.
Nevertheless, a small or mid-size property can optimize its revenue by taking into account its experience and identifying demand in advance. Zak Yield Management (Zym) will take care of the rest! It is suitable for small properties too: why not increase the price of the last one/two rooms by €5, 10 or 20? Start now to maximize your revenue.
What are the main Yield&Revenue management strategies?
We have mentioned how the tool works. Let’s see it in practice now.
- Before starting, you need to know exactly the historical data on which to create sales policies.
- Then you need to create a dynamic rate plan taking into account seasons. This means designing the most attractive rate for each day of the year and for each room type. This is where the demand forecast is created.
- After that the prices will be published, giving instructions to Zym (Zak Yield Management) and taking care to check the market fluctuation at least once a year.
If you are not experienced in this or are just starting out, there are excellent revenue managers who can help you. Or you could also decide to try, if you wish.
What else will you find in Zak’s March release?
We have added another channel to Zak’s Channel Manager and this time it is Hotelbeds.
TripAdvisor is coming. Stay tuned!
Optimization of the management of Discount Codes in the Booking Engine.
Until yesterday, incoming reservations from Zak’s booking engine, to which Discount Codes had been applied, were simply registered with a lower price but were not highlighted in Zak’s interface with the name of the Discount Code applied. Now, Discount Codes are perfectly integrated and visible on the reservation detail page, exactly as if they were manually added.
Google and Trivago
Google and Trivago are now fully integrated among the Metasearchers of our Channel Manager.
Optimization of the cleaning management features of our PMS Zak WuBook.
These to mention the main innovations.