Basic Strategies of Yield Management
Yield management is defined as management of the room rates to maximize the room revenue under the conditions of fluctuating demand and where the products are perishable. Jauncey.S et al (1995).
According to Jones.C et.al (1993) the two basics strategies on which the yield management is emcompasses on are:
“When the demand is high the emphasis must be on receiving the highest rate possible for a room, ie maximum revenue
When the demand is low, and/ or late booking demand is unlikely, the emphasis must be on maximising room sales, ie offering rooms at discounts to stimulate, example leisure custom, to avoid the waste of room nights”
Rooms Available to let = 100
Rack rate Double occupancy = £120
Rack rate Single occupancy = £90
English breakfast = £10
Express Lunch (1 course) = £10
Lunch (2 course) = £12
Table d’hote Dinner = £18
24 hours Function Package (room £65, F&B £40) = £150
The concept of the game which we played was hilarious because this concept acknowledges us about the day to day tasks which are performed by the front office. It not only notifies about the world but it does tell that what are the difficulties and dilemmas (whether to take a booking or not) faced by front office employees while doing the reservation of the guest. Performing their task is not easy and we had learnt this after playing the game. Our group name was “Group 1” and I was playing the task of receptionist, while playing the game I learned how to convince customer to pay higher prices. Definitely it increases the level of communication level as all the things are dependent on the communication skills and the way we treat the customers which can be very tricky. We were 5 members in the group and every group member was performing their task which is very good because playing different roles and getting into depth of the role increases the knowledge. The actual game literally gave us an idea of how managers handle the situations and control the room
According to Jones.C et.al (1993) the two basics strategies on which the yield management is emcompasses on are:
“When the demand is high the emphasis must be on receiving the highest rate possible for a room, ie maximum revenue
When the demand is low, and/ or late booking demand is unlikely, the emphasis must be on maximising room sales, ie offering rooms at discounts to stimulate, example leisure custom, to avoid the waste of room nights”
Rooms Available to let = 100
Rack rate Double occupancy = £120
Rack rate Single occupancy = £90
English breakfast = £10
Express Lunch (1 course) = £10
Lunch (2 course) = £12
Table d’hote Dinner = £18
24 hours Function Package (room £65, F&B £40) = £150
The concept of the game which we played was hilarious because this concept acknowledges us about the day to day tasks which are performed by the front office. It not only notifies about the world but it does tell that what are the difficulties and dilemmas (whether to take a booking or not) faced by front office employees while doing the reservation of the guest. Performing their task is not easy and we had learnt this after playing the game. Our group name was “Group 1” and I was playing the task of receptionist, while playing the game I learned how to convince customer to pay higher prices. Definitely it increases the level of communication level as all the things are dependent on the communication skills and the way we treat the customers which can be very tricky. We were 5 members in the group and every group member was performing their task which is very good because playing different roles and getting into depth of the role increases the knowledge. The actual game literally gave us an idea of how managers handle the situations and control the room
References: Define yield management H.Peter (1999) Profit Planning, second edition page no.47, printed in United States, Strategies Jones.C et.al (1993) accommodation management pg.286 Jauncey.S (1995), the meaning and management of yield in hotels, International Journal of Contemporary Hospitality Management, Vol. 7