Demand And Supply The Backbones Of Yield Management System -zngay

Business Revenue management system, which also dubbed as yield management system, is a system intended to understand, evaluate and eventually to respond the consumer behaviour in order to maximise the revenue. The basic concept of the revenue management system is based on the principle of demand and supply, which states that, when the supply is short, prices go up and when the supply is high, prices go down. It was the airline industry that has initially implemented the yield management successfully. And then, many other sectors including the hospitality industry followed the trend. Yield management is a systematically, studied method by the aid of which hotel revenue managers, place the customers within the principle of demand and supply, to generate maximum revenues. The hotel revenue manager’s job is to allot the available rooms to the right customers, at the right price and at the right time, in view of escalating the profits. For instance, the customers with a very little flexibility in their travel plans are ready to pay higher prices for their hotel rooms, while, the customers with great deal of flexibility are not inclined to pay higher prices. The hotel revenue managers manage the rates of hotel rooms for such customers, accordingly How Does the Revenue Management System Work? To achieve maximum profit, a revenue manager needs to have knowledge of past as well as present circumstances. Analysing the bygone facts, revenue managers can predict what may occur in the future. In the hospitality industry, the Hotel revenue management system has to periodically review the transactions between the customers and the hotel. Other external information such as statistical data, public holidays and other events, .petitor’s price information, seasonal buying trends, etc., is then fed into the revenue management system. Thus, the yield management system attempts to predict the total demand within a specific period for the services offered, based on market segment and price consideration. In simple terms, it tries to answer the question "what is the best mix of services for a business firm to sell within a particular time-frame for their class of products?" So that, they can generate the highest revenue. Today, many business firms are facing the problem of revenue generation due to intense .petition, shrinking profit margins, changing customer requirements and reducing market spaces. More than ever before, today businesses require to quickly responding the unstable market conditions and varying consumer demands. Due to these factors, business firms, all over the world, are heavily shifting towards revenue management system that helps them understand customer-mentality and thus, adapt to maximize their revenues. Generating higher revenue and optimizing profit are the basic targets of most service providers, thus it is imperative that they should apply the revenue management system within their organization. It helps them explore new market opportunities, by attracting the customer, introducing new services, and to be ahead of the .petitors. About the Author: 相关的主题文章: