Opportunity Assessment: Automated Yield Management at ResortPass
Yield Management is the process of making frequent adjustments in the price of a product in response to certain market factors, such as demand or competition. In the realm of ResortPass, this means changing the price of products due to changes in inventory or time in order to maximize revenue. This could mean increasing the price as inventory is sold because the remaining few are now at a premium. Or it could mean lowering the price if it is close to the inventory date and the hotel would rather get some revenue than have the inventory unused.
How is yield management done in ResortPass today?
Hotels can change the price of a product one day at time or for a specific date range and specific days of the week in that range. The onus is on the hotel to make the price change, as well as figure out what price to change the product to and when. Hotels report having to pay attention to ResortPass daily and throughout the day, making frequent price changes. While this is currently time consuming, they do it because they can see the revenue lift from their efforts.
We have a Boost Revenue feature that lets a hotel know when they should increase inventory, or lower prices. This logic looks 10 days out and shows a blue dot on the calendar day if the inventory is almost sold out (add inventory), or sales are low (lower price). The message to the hotel is shown when they click into a day.