At Yield Revenue: During 2016, we have continued to investigate demand projections and how they affect the average price, relating them and achieving the maximum sale price for each day, to try to achieve the maximum possible daily income.
This has led us to a growth of 82% in the first 6 months of 2016, compared to the year we started working with the Pol & Grace hotel.
The trust and collaboration of the hotel management and the property made it possible to achieve and share these great results.
Since late 1999, we have been working, researching and innovating how to improve the income of our clients, with perseverance in research to try to always upgrade ourselves; all this has led us to develop a series of algorithms that we use in our personal analysis and hence have a high reliability in the price decisions process.
In mid-2012, both the management and ownership of the Pol & Grace hotel relied on YIELDREVENUE to help them improve their revenue, with the guidance of Revenue Management.
From 2011 -the year before our incorporation- until 2015, the increase has been more than 46%.
The hotel’s commitment to grow with us through its revenue improvement has been complete, and this is our main objective: the constant improvement of revenues year after year and that is what has been achieved.
The first objective was to identify the improvements to be made, so an exhaustive study of all the internal and external variables of the hotel was carried out.
– Internal variables: segmentation, contracting, tariff grill, etc.
-External variables: The city’s current demand, recent and historical data (compared to last past years) and the impact of these on the average price of the hotel.
With this information, the potential result to be achieved from this initial point was defined.
Improvements and results
The improvements have been applied gradually in a controlled way, making each change help to improve revenues continuously.
-Hiring: The hotel already had an online contract with adjusted commission as it has always been an objective to work with minimum possible commission.
To complement this situation, you are always in constant search of new channels that help expand distribution and you are receptive to hiring with lower commissions.
-Pricing: Initially the hotel worked with a tariff grid, which was greatly expanded in quantity. Taking the final step of selling at the price to the euro, which allows great flexibility in the management of Revenue Management, like any demand product, we work to the euro, to maximize income, an important part with the collaboration of the property to adapt the pms.
To ensure the hotel has the best combination of occupancy-average price, it has been possible to identify the maximum average price accurately (which can be sold at all times) with the projections of future demand and how this demand impacts the price of the hotel.
We make demand projections continuously and associate it with the maximum average price we can achieve, which we are constantly updating, so we can get the maximum possible income. This method is uniquely developed by us and has proven to give exceptional results. For each hotel we take into account both weekdays and weekends, the evolution of corporate clients, tourist for each day of the week, both in the short, medium and long term.
-Product: The adaptation of the hotel to upgrade from 3 to 4 stars was analyzed, in which there was an opportunity to improve revenues, the hotel did so and further improved the score of customers in the main online channels, rising from 8 to 8.6, as well as a significant improvement in service, concept model and management of the hotel.
A new room type has been created recently to help sell.
Since the first year, we took the hotel to exceed 90% or 95% of annual occupancy, the growth has been focused on the increase in average price, with an exhaustive and daily analysis of the indicated variables. The price changes are made once, twice or three times a day, both in the short, medium and if necessary in the long term, to try to earn the euro or euros as demand allows.
In short, the objective of Yield Revenue is to improve the income of our clients through the management of the hotel’s revenue data, using our own analysis tools, which make us unique in the market.
Finally, RevPAR results from February to December 2015 compared to 2014 had a growth of 28%. January was not taken into account, as the hotel remained closed in January 2014.