Looking into yield management, Book4Time shares an insightful piece on its impact on technology in the hospitality industry.

Yield management, the strategic use of data to optimise pricing and capacity based on fluctuating demand, is becoming a crucial business practice. It is not a new concept, having been a staple in the airline industry for decades and adopted by major hotel brands for several years. However, its broader application beyond room rates and time-based adjustments is gaining recognition.

Suzanne Holbrooke, Marriott’s Senior Corporate Director of Spa Operations, implemented a successful program over a decade ago, incentivising spa front desk staff to offer treatment upgrades at an additional cost. This initiative generated an impressive $8 million revenue increase in 2019, with an 80% profit margin. Holbrooke emphasises the multifaceted nature of yield management.

With using Book4Time’s out of the box yield management and dynamic pricing solutions various companies employ granular approaches to manage yield effectively. Last-minute deals stimulate demand by offering discounts on unsold capacity as the service date approaches. Early-bird discounts encourage early bookings with lower prices. Adjusting capacity based on demand forecasts, flexible staffing levels, and categorising inventory are other strategies, akin to airlines dividing seats into fare classes.

Utilisation percentage rate automatically adjusts prices as the spa or facility fills up, maximising revenue during peak times. Blocking inventory involves holding back capacity for release closer to the service date, particularly when higher prices are expected. Blackout dates restrict discounts during peak demand periods. Package deals, bundling products or services at a discounted rate, often boost overall sales.

Roger Sholanki, CEO of Book4Time, highlights the increasing ease of revenue and yield management. He attributes this to powerful data collection tools, cross-department integrations, and intuitive interfaces. Book4Time’s reporting dashboards provide accurate data points for better forecasting, enabling decision-makers to navigate complex numbers.

This evolution is reshaping how industries perceive revenue potential. For fixed-capacity sectors like hotels, airlines, and spas, mastering yield management is becoming a key differentiator between mediocre returns and significant success. Business leaders are recognising the transformative impact of yield management, emphasising its role in maximising revenue, optimising customer experiences, and unlocking untapped potential across ancillary revenue streams in the spa and hospitality sector.

book4time.com