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The first step in a yield management program is to determine who is the best customer. The best customers are: The ones who can spend the most money at your property purchasing profitable items, the ones who receive the greatest benefit from your services. | Yield Management: Choosing the Most Profitable Reservations William J. Quain and Stephen M. LeBruto Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction The first step in a yield management program is to determine who is the best customer. The best customers are: The ones who can spend the most money at your property purchasing profitable items. The ones who receive the greatest benefit from your services. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Where do you find your best customers? In the property’s data collection system. In order to properly implement a yield management project, the property must be viewed as a collection of profit centers. A profit center is a place where value is created and exchanged. An important part of analyzing the potential of each profit center is to identify all the possible sources of revenue. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Profits are the only true measure of business success. The following groups all benefit from enhanced profits: Guests Employees Management Shareholders and investors Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. There are six major obstacles that face management in their efforts to implement a yield management system. These impediments are: Lack of creativity Lack of attention Monitoring the wrong signals Conflict between sales and service Targeting the wrong customers Rewarding the wrong behavior Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Basic Concepts of Yield Management Yield management requires knowledge of guests’ behavior, plus an understanding of which business is most beneficial to a hotel. Three main revenue-management concepts that allow hotels to pick up relatively easy money: Simplifying the yield management system. Examining the rate controls. Using length-of-stay controls to shift demand. Copyright © 2011 by John Wiley & . | Yield Management: Choosing the Most Profitable Reservations William J. Quain and Stephen M. LeBruto Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction The first step in a yield management program is to determine who is the best customer. The best customers are: The ones who can spend the most money at your property purchasing profitable items. The ones who receive the greatest benefit from your services. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Where do you find your best customers? In the property’s data collection system. In order to properly implement a yield management project, the property must be viewed as a collection of profit centers. A profit center is a place where value is created and exchanged. An important part of analyzing the potential of each profit center is to identify all the possible sources of revenue. Copyright © 2011 by John Wiley & Sons, Inc. All rights reserved Introduction Cont. Profits are
