Yield Management in Front Office

Competitive Set

• Group of similar hotels

• A collection of different hotel brands

• A list of hotel amenities

• A ranking of hotel prices

Upselling

• Encouraging guests to buy more

• Offering discounts on future purchases

• Providing complimentary items with a purchase

• Suggesting cheaper alternatives

Channel Management

• Managing distribution channels for bookings

• Creating marketing strategies for promotions

• Analyzing customer feedback for service improvement

• Setting pricing strategies for products

Overbooking

• Selling more rooms than available

• Offering discounts on unsold rooms

• Limiting the number of guests per room

• Ensuring all rooms are booked at full price

Booking Window

• Time between booking and stay

• Duration of the stay

• Time of check-in

• Period for cancellation

Customer Lifetime Value

• Projected revenue from a customer over their lifetime

• Total cost incurred to acquire a customer

• Average revenue per transaction

• Revenue generated from a customer in the first year

Length of Stay

• Duration of guest's stay

• Total number of guests

• Type of accommodation

• Check-in and check-out times

Dynamic Pricing

• Adjusting prices based on demand

• Setting fixed prices regardless of demand

• Offering discounts during off-peak times

• Increasing prices during sales events

Forecasting

• Estimating past sales

• Predicting future demand

• Analyzing current market trends

• Calculating production costs

Cancellation Policy

• Rules for canceling reservations

• Guidelines for making reservations

• Instructions for checking in

• Terms for late arrivals