Our areas of expertise

Overall Introduction

As you did, throughout 10 years of operational experience in Pricing and Revenue Management, we have coped with the following issues:

  • How to challenge my Yield Application’s forecasts?
  • How to create an efficient fare range for 200 hotels?
  • How to ensure rate parity through all my distribution channels?
  • Do I have to raise my prices or close one of my distribution channels to optimize revenue?
  • How to make my team support my decisions?
  • How to get out of all my Excel files?

Our mission at N&C today is to help you answer these issues:

  • Making you step back from your tools and processes
  • Teaching you the best practises implemented in other industries
  • Identifying the quick wins, the « must-do » and long term structural evolutions
  • Assisting you in the execution of those actions.
N&C actively advises companies in a dozen areas, wether Revenue Management & Pricing practises are historically applied (Airlines, Trains), developping (Hotel & Hospitality, Cruises, Coach areas) or in a discovery phase (campsites, car parks, vehicle inspection services, debt recovery).

Learn more about our areas of expertise:

Pricing

Pricing pushes forward the limits of the possible

Pricing does not only consist in creating prices. It is also the art of segmenting demand in order to push forward the limits of the possible and ensuring that you end up with the High Yield demand.

Pricing segments demand with relevant fare conditions, gives price recommandations to the Salesforce and provides Yield Managers with intelligible and exploitable fare grids.

PRICING HAS A KEY ROLE IN THE REVENUE PRODUCTION PROCESS.

It must:

  • Improve the sales conditions but not make them complex
  • Make the offer more flexible but not weaken it
  • Segment demand but not crumble it into unexploitable groups
  • Follow competition but not copy and paste its prices.

Those 4 ingredients seem simple but the recipe is often more complex.

Pricing must also offer fare ranges available for different markets, and different distribution channels.

It creates prices taking into account costs, competition, product life cycle and demand pressure.

AMONG OTHERS, WE COPED WITH THE FOLLOWING ISSUES:

Definition of the pricing strategy

Hotel chain with a portfolio of 30 hotels

Context

  • Dramatic growth of the company and massive arrival of workers
  • Highly competitive environment : increasing power of distributors, soaring of a new type of competition with AirBnB, downward trend in the market)
  • Premiumisation of the brand (towards 4* and more)
  • Change of PMS.

MISSION

Adapt the Pricing Strategy of the group to enable Pricing & RM analysts to maximise the revenue generated by the current.

In concrete terms, it consisted in defining a Pricing Strategy that would be:

  • Clear and explicit for customers
  • Consistent with the Distribution Strategy
  • Embraced by the staff
  • Exploitable by the Princing & RM Analysts
  • Easy to set up in old and new PMS.
Production OF PRICE GRIDS

Leading European Campsite Group with a choice of 200 destinations

Context

  • Set up of a Revenue Management Strategy
  • Newly created RM team
  • Urge to create price grids for the next season even before CY season lasts.

mission

Create price grids for 200 campsites in order to make a RM strategy application possible.

In concrete terms, it consisted in drawing up price grids that would:

  • Be wholly consistent but would consider each campsite’s pressure of the demand
  • Reflect demand seasonality from one week to another
  • Apply coherent price differences between the various types of Mobile Homes whatever their capacity
  • Offer an early booking discount and other formulas for Tour Operators and Workers Comitees
  • Offer price automation for long stay contracts.
AUTOMATION OF FARE GRID PRODUCTIONS

Cruise Company

CONTEXT

  • Data dispatched into many Excel files (historical analysis of sales, prices, etc.)
  • Manual updates with copy and paste from a file to another
  • Decentralization of information
  • E-mails as means of communication.

MISSION

Develop a pricing tool that would gather all needed variables and that would automatically create Set Up Files.

In concrete terms, it consisted in developing a tool that would:

  • Display at once all information needed to make decisions (On the Book, Change Rate, revenue leakages, sales formulas, etc.)
  • Simulate calculations based on fare hypothèses
  • Monitor price differences between the various types of cabins
  • Precalcultate the set up on the customers’ price basis
  • Keep  prices history in a database for reporting matters
  • Draw up set up files to later upload them in the booking system
  • Inform the staff about the availability of the set up files.

Yield Management

Yield Management to select High Yield

When demand surpasses offer, Yield Management enters the scene and selects High Yield demand to raise the Average Price. On the other hand, Yield opens the floodgates to let the whole prospective demand come in.

Yield Managers identify high peak seasons thanks to unconstrained and seasonnalized forecasts. They focus on local or even surgical optimization proceeding date after date, passing from one inventory to another.They spend more time on constrained dates than on all other unconstrained inventory. They arbitrate, sort out and choose demand. They adjust the level of the inventory overbooking based on their forecasts. They decide and accept full responsibility for it.

Therefore, Yield Managers must:

  • be resolute without being stubborn
  • show pragmatism but not produce shoddy work
  • be driven by convictions rather than certainties
  • follow good management principles without being dogmatic.

AMONG OTHERS, WE COPED WITH THE FOLLOWING ISSUES:

Development of an automated RM solution for a Cruise company

Cruise Company

CONTEXT

  • Soaring of the RM office within the company
  • RM teams getting increasingly skilled
  • No demand forecast to support RM actions
  • No decision-making tool
  • Data dispatched into many Excel files
  • Manual and weekly refresh of the datas.

MISSION

Draw up a centralized and automated RM solution in order to support analysts in their actions to maximise revenue.

In concrete terms, it consisted in:

  • Creating a database that would gather all the information
  • Automating data supply on a daily basis
  • Drawing up tabs to display key performance indicators (On the Book, Pick up, Pick up curves)
  • Calculating demand models and creating forecasts (automated forecasts and manual forecasts)
  • Setting up a battery of alerts to direct the analysts’ décisions
  • Drawing up a « Cockpit » tab with the most useful indicators for the daily follow up
  • Keeping history of RM actions and notes from RM analysts
  • Informing the staff about the set up needs.
Deployment of a RM solution for an airline company

Airline with a turnover of 131M€

CONTEXT

  • No RM tool before the newly implemented one
  • New partnership with the first partner company in order to manage flights
  • A type of customer that needs to be handled cautiously (fixed prices and last room availability).

MISSION

Ensure a smooth and safe transition toward a new RM solution.

In concrete terms, it consisted in:

  • Training and directing teams for a proper use
  • Preparing first set-ups for the tool to be operational
  • Making sure that all business needs will be covered by the tool
  • Supporting teams with new working methods related to the Revenue Management tool.
Deputizing a RM analyst

Coach company with more than 200 O&D

CONTEXT

  • Newly created company
  • Yield team with many opened jobs
  • Yield processes to be built and implemented.

MISSION

Make one of N&C Consultants available to assist RM teams in their daily work for a period of 4 months.

In concrete terms, the Consultant’s mission consisted in:

  • Running a portfolio of O&D
  • Drawing up analyses of booking trends and demand forecast
  • Using the proper prices for the perimeter concerned
  • Selecting prices for the following seasons
  • Producing reports.
Coaching of a RM Manager

For a 200-campsite group

CONTEXT

  • RM team was newly created
  • Arrival/Promotion of a new Manager with knowledge of RM principles but no practical background
  • Implementation of a RM tool
  • Deployment of a RM strategy.

mission

Support the new Manager in her operational and strategic décisions.

In concrete terms, it consisted in:

  • 2 to 3 half-days on a weekly basis, over a 4-month period
  • Assisting on demand forecast and decision-making
  • Setting up good practises for RM, Sales, Marketing and Finance teams to collaborate
  • Defining the weekly planning of assignments
  • Advising about set-up choices for the RM tool
  • Teaching Post Mortem analyses and diagnoses.
Development of a tool for « inter-type rooms overbooking »

Group of 60 residential properties

CONTEXT

  • Many heterogeneous inventories
  • RM team with limited Tools
  • Low level of distribution.

mission

Automate a tool to calculate the right level of overbooking allowed from one type of room to a higher ranked one.

In concrete terms, it consisted in:

  • Mapping all types of appartment rooms to identify which type can be overbooked and over which type demand can be discharged
  • Automating detection of appartment rooms that would end up empty or booked with a high deterioration of prices
  • Synthesizing all recommendations in a simple format
  • Bringing together all alerts with charts in order to support analysts’ décisions
  • Making recommendations easy to be validated by the analysts.

Revenue Integrity

Revenue Integrity monitors and checks if it does add up

When a product is not set up properly in the systems or when a discount is offered without monitoring, when penalty fees are not paid or when sales rules are not respected, the gap between the revenue you do collect and the revenue you should have collected can be abyssal.

Revenue Integrity then steps in. It identifies gaps between what has been sold and what was supposed to be sold, and gaps between what was cashed and what was theoretically cashable. It makes stakeholders improve their processes, since gaps are generally not linked with any ill will but rather with process or set-up difficulties or lack of communication, coordination or understanding.

While some misunderstand it as the battle-axe of Revenue Management & Pricing, it rather grants consistency all along the sales chain. It drives all stakeholders towards excellence when it secures processes.

It cheers up and never punishes

It measures and never watches

It clarifies and never complicates

AMONG OTHERS, WE COPED WITH THE FOLLOWING ISSUES:

Launch of a RI step

Apparthotel Administrator

CONTEXT

  • Coexistence of many Information Systems
  • Permissive PMS that allow manual intervention
  • High level of distribution
  • Many irregularities identified (fraud, penalties or down payments not collected, wrong commission).

mission

Pave the way to Revenue Integrity, provide a methodology and support teams in their choice of a tool.

In concrete terms, it consisted in:

  • Identifying and qualifying irregularity types (related to the set-up, the clarity of sales conditions, manual interventions or the calculation methods for penalties…)
  • Launching  tests on a selection of irregularities and on a narrow perimeter
  • Automating their detection with rules
  • Keeping history of irregularities and their resolution for reporting purposes
  • Elaborating KPIs for Revenue Integrity
  • Supporting the Customer in the choice of a tool (specification needs, hearings of the candidates).
Development of a tool to detect irregularities

Leader in cosmetics packaging

CONTEXT

  • Industrial group with many factories and different ERP
  • Sales process exclusively oriented to B2B clients
  • Uncomplete contracts
  • High level of complexity of the product and sales conditions.

mission

Automate irregularity detection during orders (minimum amount not reached, prices not indexed to raw material, component mix not respected, time limit not respected, etc.) Detect margin erosions.

In concrete terms, it consisted in:

  • Bringing together data sources coming from different Information systems
  • Enriching contratcs, general and special sales conditions
  • Detecting erosion of margins throughtout time and their cause
  • Automating detection of first irregularities at the factories.
Flash Audit

European company in the tourism sector

CONTEXT

  • Company present in many European countries with heterogeneous processes
  • Many manual discounts
  • Low level of distribution
  • 1st audit run by the Finance office.

mission

Enrich analyses run by the Finance office on dysfunction causes and manual discounts. Measure impacts on unconstrained dates. Make recommendations of quick wins to solve those issues.

In concrete terms, it consisted in:

  • Qualifying irregularity types by cause (gestures to customers, compensations, inadequacy of price codes, partnerships, etc.)
  • Linking discount datas with levels of constraint to assess the High Yield turnover displaced
  • Recommending solutions to contend discounts: extension of the price codes list, ask-and-validate process, automatic quantification of the requests potential.