The Art of Yield Management Pricing: How Does it Boost Hotel’s Revenue?

One of the most challenging aspects that every hotel owner and revenue managers face is increasing the occupancy rates of their hotels. On this note, yield management is a key pricing strategy that helps hotel managers understand major pricing tactics, leading to an increased revenue stream. 

In this article, you will discover a few important points of yield management pricing and its benefits in the hotel industry.

So, What is Exactly Yield Management Pricing?

Yield Management Pricing is one of the best ways to increase the hotel’s revenue by smartly using inventory management. The process follows considering various crucial factors like understanding customers’ behaviours, current booking trends, peak season, upcoming festivals and many more for the sake of driving profitability. It involves strategic control of your hotel’s inventory and available information to streamline revenue generation. 

What are the Benefits of Effective Yield Management Pricing Strategies?

• Helps in Adjusting Prices-  It is all about selling the right room at the right time to the right customers. Yield management, on the other hand, provides a sophisticated approach that helps hotel owners understand these aspects and adjust prices depending on external factors such as occupancy rates, events, competitors' pricing and so on.

• Capitalize during High Demands-  Based on the data available, hotel managers and airlines can strategically charge different prices during the peak seasons. The strategy will help them to increase their room rates especially when the hotel is in high demand like during the time of major events when guests will pay more. Again during low-demand periods, you can offer discounts and offers that will attract more customers. 

• Forecast Demands- Lastly, the strategy will allow hotel managers to forecast the demand more accurately and precisely. This will help them to pinpoint the areas where they can earn more revenue and optimize their inventory allocation in the best way. 

The Bottom Line

So, you can see that yield management pricing is an effective strategy that can help your business earn an easy flow of revenue. However, it is advisable to integrate advanced revenue management software to streamline the whole process.  PricePoint offers cutting-edge RMS software that is designed by data scientists and experts that help hoteliers and large airlines optimize their pricing in real time.