N&C’s view, RM’s problems
This family, which includes, in particular, nursing homes and senior residences, is beginning to take an interest in Revenue Management. These are highly regulated and subsidized markets, where it is important not to be too lenient in pricing practices, as they affect the fragility of human beings at a very advanced stage of life.
Nevertheless, thinking about a sensible pricing policy for a room in a nursing home is a legitimate subject, essentially in a long-stay context. Forecasting is a major issue, particularly because the volume of admissions is low over very long periods.
RM and Pricing, practiced with measure and accuracy, have their place there.
The missions carried out
- Inventory control
- Work on the right level of availability exposure, at the right level of granularity
- Introduction of new indicators such as the length of time a room is vacant
- Work on forecasts, which is not very obvious in this type of sector
- Clustering of establishments by defining relevant 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
- Development of RM and Pricing decision support tools
INDICES E.M.D.P by N&c
The challenges are mainly related to pricing, with rate and discount positioning by room range to be worked on. Some arbitration between short and long stays and an attractive Add-On/package policy to implement. Not a very inductive and regulated market. The RM is often merged with the commercial performance.