What Strategies Are Followed for Yield Revenue Management?

Pricing can be a constant source for hoteliers, and many people ask, should I raise my room rates or lower than my competitors? What's happening with my rivals? How will the pricing decisions affect the bookings?

While there are no set solutions to these inquiries, we will mention some strategies related to yield revenue management in this write-up.  

If you want to increase the proper revenue generated at your hotel, consider implementing the following yield management techniques:

1. Let data guide your decisions

You can start by setting the proper rates for the coming year. You can also consider the market conditions, historical demand, and booking pace to decide according to the demands. You should also monitor the impact of your pricing decisions, and then you can use them by guiding future strategies.

2. Practice dynamic pricing

Check the dynamic pricing, use a variable pricing strategy, and even check the increasing rates. This included rate adjustment by the time of year (season) and day of the week during conferences and events. Thus, you can learn about the occupancy and different market conditions.

3. Implement stay restrictions

Instead of always keeping the higher rates on busy nights, you can consider implementing the proper stay restrictions. In this way, you can boost occupancy on other nights.

4. Track the competitors' rates

So should you if you want to know about the competitors' rates. Decide how to price your property in the right way so that you can give better prices than your top competitors. You can even use a rate shopping tool for easy comparison and even get the chance to ensure that you keep the right prices. Thus, better results can be expected with yield revenue management. 

5. Vary your pricing

You can even easily charge a higher price for the most demanding rooms with extra facilities and space. For example - a nice view, a balcony, or a bigger bed. You should also focus on various rate plans that vary according to the traveler types and budgets. Set the non-refundable rates, weekend rates, and even additional discounts for direct bookings and longer stays.