ThinkReservations has a Yield Management feature that allows you to manage your yield, and therein your profit, by setting up rules that automatically adjust your rates based on occupancy. Within each Rate Type, you'll find a tab at the top, to the right of "Rates & Restrictions", where you can configure these rules.
Navigate to Settings ⟶ Rate Types ⟶ click the rate type you wish to modify ⟶ Yield Management tab
- There are no limits to the number of rules you can create.
- Overlapping rules are additive.
- Adjustments are made for all rooms within the Rate Type.
- Your rules are based on occupancy percentage. Occupancy percentage varies based on the number of rooms included in the Rate Type.
- Rules are specific to each rate type. Ensure that you have the same rules for your OTA Rate if you have one.
- Blackouts count towards occupancy.
- Linked rooms count towards occupancy. For example, if you have a Whole House "room" option that results in your individual rooms being blocked when it's rented, you will need to include the Whole House "room" as part of your occupancy.
There are a couple of things to consider before setting up some automatic yield management, and for each business, it will be different. Automatic yield management can be helpful but it is suggested that you take a deeper look at your peak seasons and any peaks-within-your-peak season as a way to get more revenue coming in. When you configure the rules, they apply to all rooms in that Rate Type.
The example below is used to help explain how ThinkReservation's Yield Management is configured. Let's say you wanted to create the following rules:
1) If I have high occupancy (70% to 100%) and guests are searching for dates that are more than 7 days out, I want to increase the price by 20 dollars. This rule applies only during the date range specified.
2) If I have medium occupancy (40% to 70%) and guests are searching for dates that are more than 7 days out, I want to increase the price by 8 dollars. This rule applies to all dates.
3) If I have low occupancy (0% to 30%) and guests are searching for dates within the next 7 days, I want to decrease the price by 10 percent. This rule applies to all dates.
The screenshot below illustrates how to implement these three rules:
There is no limit to the number of rules that you can create!
When you add new rules or make changes to existing rules, you will NOT see these reflected in your Rate Type calendar. Why? Because this is where you set the base rates. How do you see the changes?
Go to your reservation calendar, and click on the View drop-down and then select "Show Rates" to overlay the price on the calendar matrix. Now you'll see the results of any Yield Management rules that apply.
You can also test the rules by searching in your booking engine.
Note that in the first two rules we repeat the number 4 in the booking date ranges to prevent a gap in the rule.
In the above image, we are lowering the price when occupancy is low and there isn't much time to sell the room. When we'll have more time to sell rooms, we discount by a lesser percentage.
When occupancy is higher than 50%, we are increasing the price of the room. The percentage of increase will change based on how high our occupancy is, as well as how many days we have to sell the remaining rooms.
Related: Manual Yield Management