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.

Learn more about our areas of expertise: