What is yield management and how does it differ from revenue management?
Yield management is a strategy to maximise a hotel's revenue by adjusting room rates according to demand. The aim is to sell each room at an optimal price. An example: During a exhibition in the city, rooms can be offered at a higher price as demand is high. On a quiet Monday, on the other hand, a lower price could bring in more bookings and increase occupancy.
The difference to revenue management lies in the scope. Yield management focuses primarily on the pricing of rooms and capacities. Revenue management, on the other hand, takes a much broader view of revenue maximisation. Revenue management also includes long-term market analyses, cost management and additional sources of income such as the restaurant. Yield management is therefore an important part of revenue management, but is less complex and usually more short-term orientated.
Why is yield management so important these days?
The hotel industry is more competitive today than ever before. Guests compare prices online in just a few seconds. In addition, platforms such as Airbnb & Booking are increasing the price pressure on hotel operators. Operating costs in general have also increased significantly in recent years.
Yield management can offer a decisive advantage here to counteract this trend of falling margins: it enables hotels to flexibly adjust their prices to the market situation. This allows hotels to attract guests with attractive offers in times of low demand and optimise their occupancy rates. At the same time, hotels can maximise their revenue through targeted price adjustments when demand is high or during the peak season. Without yield management, hoteliers risk either leaving rooms empty or wasting revenue potential. It has therefore become an indispensable tool for being successful in today's competitive environment.
Why you need software for effective yield management
In order to operate effective yield management, room rates must be adjusted as frequently as possible in line with current market developments and changes in demand. Experience has shown that prices up to one year in advance must also be taken into account. For small and medium-sized hotels, this process is almost impossible. Manual price changes are not only time-consuming, but also require keeping a constant eye on the market and competitors. A task that is increasingly challenging even for experienced revenue managers in our complex and dynamic world.
Revenue or yield management software takes over this complex process for you automatically. It continuously analyses data, identifies trends and gives you specific suggestions on how best to adjust your prices. Many software solutions can also fully automate the pricing of your rooms. This means that your room rates always remain competitive without you having to worry about every single price change yourself.
Cloud yield management systems on the rise
What used to be the preserve of large hotels is now also possible for small and medium-sized businesses thanks to affordable cloud technology. The investment often pays for itself after a short time thanks to the additional revenue generated by better pricing. These systems can also be easily integrated into existing PMS solutions, making it particularly easy to get started.
What you should look out for when choosing your yield
management software
Different solutions for different requirements
The requirements for yield management software vary depending on the type of hotel. City hotels often require functions such as detailed market analyses and precise monitoring of the competition. Holiday hotels, on the other hand, value flexibility, for example in the management of minimum stays or dynamic price adjustments during the high season.
Every hotel has individual requirements, and the right software should take these into account. Make sure that the functions not only suit your current operation, but also support future growth and changes.
Small and medium-sized hotels should pay attention to these requirements
For small and medium-sized hotels, it is particularly important that the yield management software is user-friendly and cost-efficient. Intuitive operation reduces the amount of training required and enables even less experienced teams to use the software quickly.
The software should also offer seamless integration with your PMS. Only then can data such as occupancy rates and booking trends be optimally utilised. A high degree of automation is also crucial - the software should save as much time as possible and should therefore be able to make price changes independently and based on real-time data.
Choose software that is scalable and can adapt to the growing requirements of your business. This will ensure that your hotel benefits from an efficient pricing strategy not only today, but also in the future.
Revolutioniere dein Yield Management mit happyhotel
Are you looking for a yield management system that can be customised to the exact needs of your hotel? happyhotel makes your yield management easier, more efficient and more profitable - even if you have no previous experience.
This is what happyhotel offers you:
- Dynamic pricing: Automatic adjustment of prices in real time thanks to our autopilot - fast, precise and data-based.
- Ease of use: Intuitive interface that requires no lengthy training - get started right away!
- Clear reports: Transparent analyses and evaluations. So you always have your key figures in view.
Get your hotel fit for the future
Try happyhotel now for free and experience how easy effective yield management can be.
and convince yourself
Forget manual price adjustments. With happyhotel, you can maximize your income without constantly checking prices.
