Yield and Revenue Management for Hospitality Businesses

Yield and Revenue Management 1
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Yield and Revenue Management 2
Yield and Revenue Management
IDeaS Company provides strategic advisory services, exceptional client support, and
innovative solutions to help the hospitality businesses manage their revenues better and to also
solve revenue management challenges that they might be facing. These businesses see an
incremental uplift of 5% on average beyond the market trends which is not usually the case when
they use ordinary practices of revenue management (Varini 2011, p.289). Hotels usually face
common challenges when it comes to pricing strategies and also distributing pricing through
various channels. Due to these challenges, many hotel businesses usually sacrifice their time
implementing and reviewing system recommendations instead of taking their time to execute a
revenue strategy that could help them in the long-run.
Also, these businesses could outsource revenue management firm like IDeaS which will
provide them with cloud-based solutions which produce powerful decisions continually which
will enable the hotels to achieve revenue performance, which is at an optimal level, through
automated controls which will manage their pricing (Hinterhuber 2017, p. 2). These decisions
will be very helpful to the businesses as they are based on an analytical understanding that is
sophisticated and also knows the behavior of a hotel’s business. By using these automated
decisions, hotel’s senior management interacts directly with system inputs where they share
business insights like sudden market changes (Parker 2013, p. 149). The aim is to ensure that the
solution will use the best information that is available to produce automated decisions that are
beneficial to their business as it will help them strategize on the best pricing policy which will
translate to profitable business performance. Also, these controls will be distributed to the hotels’
booking channels which will enable them to determine the pricing method to use. The impact of
these decisions will enable the hotels’ senior management position their business in the market in