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. Yield Management Plans are configured first, then applied to Rate Types second.
To create a Yield Management Plan, navigate to Settings ⟶ Yield Management Plans⟶ click the New button.
- There are no limits to the number of rules you can create.
- Overlapping rules are cumulative,
- Adjustments are made for all rooms within the rate type that the Yield Management Plan is applied to.
- Your rules are based on occupancy percentages. Occupancy percentage varies based on the number of rooms included in the rate type.
- The same Yield Management Plan may be applied to multiple rate types. Similarly, each rate type can have a unique rate plan. Only one Yield Management Plan can be applied to a rate type.
- 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 seven 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 seven 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 seven 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:
How OCCUPANCY and ADVANCED BOOKING BY ranges work
|The first box is greater than or equal.|
> or =
|The second box is less than.|
For the booking range, don't forget 0 is a number! 1 day means tomorrow. 0 days means today.
Click the Save button on the bottom of the page to save the Yield Management Plan.
Next, navigate to Settings ⟶ Rate Types ⟶ click on the rate type you would like to apply the Yield Management Plan to. On the Details tab and in the Pricing section, select the appropriate Yield Management Plan from the toggle (see below).
Click the Save button on the bottom right once complete to save your changes.
When you add new Yield Management Plans or make changes to existing plans, 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. Also, note that the dates start at 0, not 1, because we want to apply this rule to walk-ins.
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 have more time to sell rooms, we discount by a lesser percentage.
When occupancy is higher than 50%, we increase 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