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VIEWS: 4 PAGES: 9

									                  Price policy
• The rooms

• Frequent guest program

• Price setting

• Managing the revenues
  – Yield management vs revenue management
             The rooms


• Who are the guests?

• 1bed-bedrooms vs 2bed-bedrooms
                 Price setting
• The market
• The competition
• History + evolution

• Be realistic


          Pro-active price setting
          Example
                        Add    Subtract
                Price   10%       10%
Competitor A       50    55            45
Competitor B       55   60,5          49,5
Competitor C       60    66            54
Competitor D       55   60,5          49,5
Competitor E       60    66            54
Sum               280   308           252
Average price      56   61,6          50,4



                         Your price
Managing the revenues

             Yield management

First step
                                Final step




         Revenue management
            Yield management
                        4 steps
• 1) Gather historical information

• 2) Analyze the past

• 3) Decide the YM strategy (max & min prices…)

• 4) Use all this information to adjust the software

Go beyond yield management  Revenue management
                                  Yield vs Revenue
          Yield management        Rooms

          Guests                  Price           Nights   Cost fixed   Cost variable   Tot variable   Tot cost         Tot revenu     Profit rooms

Group A                      20   €       60,00        3   € 500,00     €     12,00     €   720,00     €   1.220,00     €   3.600,00   €    2.380,00

Group B                      20   €       55,00        3   € 500,00     €     12,00     €   720,00     €   1.220,00     €   3.300,00   €    2.080,00




          Revenu management       Rooms +….

          Guests                  Price           Nights   Cost fixed   Cost variable   Tot variable   Tot cost         Tot revenu     Profit rooms

Group A                      20   €       60,00        3   € 500,00     €     12,00     €   720,00     €   1.220,00     €   3.600,00   €    2.380,00

Group B                      20   €       55,00        3   € 500,00     €     12,00     €   720,00     €   1.220,00     €   3.300,00   €    2.080,00

          F&B

          Guests                  Price           Nights   Cost fixed   Cost variable   Tot variable   Tot cost         Tot revenu     Profit F&B

Group A                      20   €       35,00        3   € 300,00     €     10,00     €   600,00     €       900,00   €   2.100,00   €    1.200,00

Group B                      20   €       55,00        3   € 300,00     €     10,00     €   600,00     €       900,00   €   3.300,00   €    2.400,00



                                                                                                       Total            Group A        €    3.580,00

                                                                                                                        Group B        €    4.480,00
              The partnership
• Courses on price setting, yield- & revenue management

• Frequent guest program

• Provide accurate information on business guests

• Recommend your hotel

• …

								
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