WP-Leveraging-RM-Uncertain-Economy.pdf (Objet application/pdf) The Business Intelligence Guide | Airline BI Solutions | Yield Management. Following deregulation of airline pricing in 1978, fare information provided to travel agents became more extensive. Discount airlines and dynamically adjusted pricing became a common response strategy.
Over time, the complexity and opaqueness of airline pricing has increased, driving the need for Yield Management Systems to ensure service profitability and airline economic viability. Airline pricing is very challenging. Dynamic pricing, also known as yield management or revenue management, is a set of pricing strategies aimed at increasing profits by combining primary factors such as multiple product characteristics and secondary impacts of those primary factors. For instance, once the first product expires [hotel rooms, airline flights, or time-dated 'sell before' products], capacity is augmented only at a relatively high marginal cost. The value of a unit in a shortage situation is the highest value of an un-served customer.
Other factors of yield management include: Using business intelligence software to drive-up revenue - 23 February 2006 - CatererSearch. As an increasing number of processes in the hospitality sector have become computerised, the industry has seen the emergence of software tools that use this data to feed back valuable information into the business. This practice, known broadly as business intelligence (BI), uses a wide range of applications and technologies to gather, store analyse and provide access to data to help companies make better business decisions.
BI applications include the activities of decision-support systems, query and reporting, online analytical processing (OLAP), statistical analysis, forecasting and data mining. Revenue and yield managementOne area where BI is popular in the hospitality sector is in revenue and yield management - allowing companies to use existing and historical data to make decisions on how they price rooms and allowing them to judge better their upcoming inventory requirements. "We are making smarter decisions, which must lead to better results. The Effect of Yield Management on Hotel Chains. Yield, or revenue management, is the process by which sales of a limited quantity of goods, such as hotel rooms, airline seats, apartment leasing, rental cars, or etc. are managed in order to maximize profits. Successful yield management focuses on selling the product in such a manner that is timely, price competitive, and directed towards the right subset of customers.
An economic concept first posited by Dr. Matt H. Keller, and first used by the airline industries beginning in the 1970s, yield management has evolved in more recent years as an important tool especially for the airline and hotel industries for staying economically competitive in otherwise saturated business playing fields. The basic concept of yield management is based in the economic principle of supply and demand: when supplies are short, prices go up; when supply is high, prices go down. Hotel Chains and Yield Management Typical Yield Management Arrangements No. of Times this article has been viewed : 6043. Analyse predictive.gif (Image GIF, 777x574 pixels)