Presentation on theme: "H OW CAN YOU COST EFFICIENTLY ORGANIZE A SEMINAR ? W HAT ARE THE SECRETS OF YIELD MANAGEMENT ? The same hotel, the same flight, the same service… But different."— Presentation transcript:
H OW CAN YOU COST EFFICIENTLY ORGANIZE A SEMINAR ? W HAT ARE THE SECRETS OF YIELD MANAGEMENT ? The same hotel, the same flight, the same service… But different rates.
A GENDA Explanation about the system Is it a manipulation of the customers or simply an organizational tool for companies? How to play with it when organizing a seminar? 2
E XPLANATION OF THE SYSTEM Also called revenue management, this system was invented in the 80s by the CEO of Delta Airlines. Now it is used in various sectors and industries. It is a technic which is used to optimize the revenues and the profitability. It is generally put in place in companies which have a fixed cost product (eg: number of seats in a plane, number of rooms in an hotel). The product or service provided by this company MUST be non perishable. In an hotel, when a room has not been sold, it is a lost. 3
I S IT A MANIPULATION ? Yield management helps to maximize the number of customers and products sold. If companies would proposed a fixed rate, the risk for them is be that you might not spend as much money as another customer will have done. At the contrary they could lose clients who are ready to accept some restrictions in order to pay less. Yield management allows them to offer a service which corresponds to the budget of each different profiles of clients. 4
H OW TO PLAY WITH IT ? In hotels, the rates are decided according to some criteria's Week dates vs weekend dates High season vs low season Number of participants Number of nights Ratio Sleeping rooms / Meeting space used Method of payment (master account, deposit…) Method of reservation (individual booking form vs rooming list) Cancellation policy,,, 5