N&C’s view, RM’s problems
The nursery sector is still in the early stages of Revenue Management but is beginning to show interest.
As for the specialized accommodation sector, the market is regulated and practices affect a human being at the beginning of life.
Nevertheless, thinking about a sensible pricing policy for a crib, or the right arbitration between different demands for nurseries (families, companies, administrations…) are legitimate subjects, mainly in a medium and long stay context. Forecasting is a major issue, particularly because the volume of entries and exits is changeable and uncertain and seasonality can vary from one year to the next.
Enrollments fluctuate by facility and region at different birth peaks, and exits are primarily related to the start of the school year in September and, more occasionally, to the causes of family moves.
RM and Pricing, practiced with measure and accuracy, have their place (in this sector).
The missions carried out
- Control of the stock
- Work on the right level of exposure of availability, at the right level of granularity
- Introduction of new indicators such as the length of time a crib is empty
- Work on forecasts, where the identification of children’s entries and exits is not necessarily obvious
- Clustering of facilities by defining grouping criteria
- Identification of establishments at risk in the medium term that deviates from expected
- standard behavior, with commercial or pricing actions to be taken
- Production of complete BI tools mixing all key KPIs, competition data, internal data (satisfaction)
- Development of RM and Pricing decision support tools
INDICES E.M.D.P by N&c
Some are interested in this area because the potential is not negligible. Good management of the “Tetris” on the weekly schedule and arbitration between the different segments give good leverage to RM. Strong stake in the good management of the stock (by category of cribs). The levers are less numerous (long stay) but more powerful.