Yield Management Rate Modifications
Entering Yielding adjustments and the configuring the yielding calendar is done in a two step process.
- Create an adjustment profile
- Attach the profile to a particular date and room type
You can have an unlimited number of profiles which define the yielding parameters and apply them to as many days and room types as you like.
For example, you can create one particular yielding strategy for Weekdays during High Season, one for Weekends during High Season, one for Weekdays during Low Season, one for Weekends during Low Season and even another just for holidays.
These Yielding Profiles are created and modified in Setup > Rates Management > Yield Management and pressing Insert, Change, or Delete in the Yield Management Rate Modifications section.
Press Insert to create a New Yield Profile.
Profile Description - Give the particular profile a meaningful description such as "Weekdays - High Season".
Ignore when stay/nights over x days - Usually, you would not want to lose a long term stay booking because of a particular day being too high for the guest. Meaning, you would rather take a 14 night stay at $129 a night, than have the guest be upset that one of the nights is $199 because of yield management adjustments and decide not to make the reservation with you. In addition, the greater this setting, the more yielding adjustments which can be applied to a guest reservation. Usually, this should be set at either 7, 10 or 14.
Discounted Rate Types allowed until: Once the Yield Type occupancy for the hotel hits this percentage, any discounted rate (defined in Select Rate Types to Yield ... on previous screen) would automatically change to the RACK (base) rate plus the yielding adjustment.
For more information, see Closed Discounted Rates.
Increase/Decrease Apply Type
Select how you want to increase or decrease your rates.
Apply By Amount - The rates will be increased or decreased by the amount entered for each occupancy percentage range.
Apply by Percent Rounded - The rates will be increased or decreased for each occupancy percentage range by the percentage entered then rounded to the nearest whole dollar (above $.50 rounded up, below $.49 rounded down).
Apply by Percent - The rates will be increased or decreased for each occupancy percentage range by the percentage entered.
Yield Increase/Decrease Values - Enter the value that the rate will increase if the Yield Type occupancy were to hit that particular range. To lower the rate, enter the value as a negative number. For example, to increase the rate by 10%, select Apply by Percent and enter 10.00. To decrease the rate by 10%, select Apply by Percent and enter -10.00.
Note: When using Package Rates, and using Yield Management, the only portion which is yielded are rates with amounts set as Use Weekday/Weekend amounts. All other charges (flat charge, per adult, per child) are not increased/decreased or modified in yielding.
Override Yield Amounts for Long Range Bookings - If a reservation were being booked more than these number of days out, enter the minimum yielding increase you would accept regardless of the previously defined Increase/Decrease Dollar Amounts for the current Yield Type occupancy. If this amount is greater than the amount the system was yielding at, then this would be the new amount used. If this amount is less than the amount the system was yielding at, it will be ignored and the original yield amount will be used.
Example: If a reservation is being booked more than 300 days out, you may want to add $50.00 to the room rate regardless of the current Yield Type occupancy because you have another 300 days to fill the same room to someone else who may pay the extra $50.00. It would be wise to try and get someone to commit to your room at a higher price since you have many other opportunities to book the room prior to the arrival date.
The date, time and initials of the last user to make a change to a profile are displayed in the lower left corner of the yield profile screen. If things are not configured as expected, this information can be helpful.
This is only Step 1!
Once you create your yielding profile(s), it is important to remember that is only Step 1! Yielding adjustments do not take effect until you APPLY them to a particular set of room types and date ranges.
Click here to read about Applying Yield Management profiles.