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How to Setup Yield Management

Updated

The following article explains how to set up Yield Management in the PMS.

IMPORTANT NOTE: Yield Management works with the eRes Online Booking Engine ONLY.

It does NOT work with any GDS or 3rd Party Rates, which include products such as: 

  • SynXis / Sabre
  • Travelclick / iHotelier
  • Windsurfer
  • InnLink / Travelynx
  • Pegasus RezView
  • Trust
  • Expedia or Booking.com Quick Connects

Setting up Yield Management

Proceed to Operations > Yield Management.

Setting up Yield Management

The Yield Management screen will appear.

Yield Management can be setup based on Rate Categories or Room Types. What is the difference?

Based on Rate Categories:

  • This option is only available if the property uses Rate Categories when setting up rates
  • This option allows Yielding to be applied to all rates within a Rate Category at once

Base on Room Types:

  • If Rate Categories are not being used, Yielding must be setup by Room Type
  • Yielding must be setup on each individual Rate Plan within a Room Type

Option 1: Yield Management by Rate Category

Ensure the Rate Grouping for Rate Categories option is selected.

Option 1: Yield Management by Rate Category

Displayed below are a list of all the Rate Categories in the PMS.

  • Name - displays the name of the Rate Category
  • Rates - displays the number of rates found under each Rate Category
  • # of Yielded Rates - displays how many rates are yielded under each Rate Category

Select the “+” sign next to the Rate Category Name to view a list off all the Rates that are found under the selected Rate Category.

The columns are:

  • Room Type - the Room Type where the rate is found
  • Rate - the name of the Rate Plan
  • Period - displays if the rate is daily, weekly or monthly rate
  • Scope - displays if the rate is public or private
  • Yield - unchecked means no yielding has been setup, checked means yielding has been setup

Select the desired Rate Category

To begin yielding, ensure the black arrow is pointing towards the desired Rate Category for yielding, and select the View Rate Yields button located at the bottom of the screen.

Select the desired Rate Category

If the incorrect Rate Category was selected by accident, use the Rate Category drop down menu at the top of the screen to switch to a different Rate Category.

Yield Parameters

  • Select the Room Type & Rate Plan where the yielding is to be set up (ensure the black arrow is pointing towards the correct Room Type & Rate Plan)
  • Click New

NOTE: Rate Category Yielding gives an option to apply the yielding parameters from one Rate, to all Rates within a Rate Category.

Yield Parameters

Enter the following details:

  • Date From & Date To: the range of dates for the yielding
  • Ascending: if the yielded amount is to be added onto the rate check the box next to Ascending. If this box is not checked, the yield amount will be deducted from the rate.
  • Flat Amount: If the yield increase is based on a flat amount, place a checkmark next to “Flat Amount”. If the yield increase is based on a percentage, do not place a checkmark next to “Flat Amount”
  • Max Value: If the yield is “Ascending”, a Max Value can be entered as a ceiling. This means the rate will not be available once it reaches this amount. This can be used as a method to "Close Out" this rate once it reaches a certain occupancy level.

Click Insert to enter yielding percentages.

Next, in the box above add the desired occupancy ranges and yielding parameters:

  • From (Occ. %) - enter the point the yielding parameter is to begin at. For example: When the property reaches 26% occupancy
  • To (Occ. %) - enter the point the yielding parameter is to end at. For example: When the property reaches 50% occupancy
  • Factor/Flat Amount - enter the Flat amount or Percentage by which the rate will increase/decrease. This is the amount the base rate will fluctuate by.

In the example below, the AAA rate will increase by $10.00 when the occupancy level is between 26% and 50%.

NOTE: The Remove button can be used to delete an occupancy range if it was entered by mistake.

Continue to select the Insert button to enter all the Yielding parameters that you wish to setup. When finished, select the Save button.

A message will appear asking if you would like to apply the Yielding parameters just setup to any other rates in the selected Rate Category.

  • Select No if the yielding parameters are only applicable to this one rate
  • Select Yes to apply the yielding parameters to any other rates

Applying Yield Parameters to ALL Rates in the Categroy

If Yes is selected, a box will appear listing all the rates under the selected Rate Category. Place a check next to the rates where the Yielding Parameters are to be applied.

Applying Yield Parameters to ALL Rates in the Categroy

Once all the desired rates have been selected, click Update to save the changes.

A message will appear letting you know that if there are already Yielding Parameters setup on any of the selected rates this update may delete/update some of the ranges. Select Yes to continue.

A message will appear saying All Updates Processed Successfully.

Click Close.

All the select rates now have the Yielding Parameters applied.

NOTE: To view the updated Yielded Rate, first close out of the Yield Management module, and then reopen it.

Checking the Yield Management

At this point, to view if the Yield Management was setup successfully, proceed to the Inventory Calendar ( F12) and locate some dates where the occupancy fluctuates. Select the Occupied % dial in the top left hand corner to view the Occupancy Percentages below.

Checking the Yield Management

Next, click the View Rates button.

Use the Room Type & Rate drop down menus to select the desired Room Type & Rate, then click the Go button.

Comparing the updated rates with the occupancy percentages, we can see if the Yielding is working correctly.

For example:

  • On July 7th, the Occupancy is at 50%. The rate was set to increase by $10 between 26%-50% Occupancy. The base rate was $180, however on this date it is now $190.
  • On July 8th, the Occupancy is at 55.77%. The rate was set to increase by $20 between 51%-75% Occupancy. The base rate for this date was $202.50, however it is now $222.50.
  • On July 11th, the Occupancy is at 76.92%. The rate was set to increase by $30 between 76%-100% Occupancy. The base rate for this date was $180, however on this date it is now $210.

These yielded rates will now be reflected when making a new reservation.

IMPORTANT NOTE:

  • If a guest books a yielded rate and then the occupancy % changes, the rate will not increase/decrease based on the new occupancy. Whatever rate the guest booked will remain on the reservation.
  • If a guest books a yielded rate and then the occupancy % changes, if the guest were to make a change to their booking that affects the rate (ie: the number of people in the room), the new yielded rate will then apply to the booking and the old yielded rate will no longer be available.

Option 2: Yield Management by Room Types

Ensure the Rate Grouping for Room Types option is selected.

Option 2: Yield Management by Room Types

Displayed below are a list of all the Room Types in the PMS

  • Name - displays the name of the Room Type
  • Rates - displays the number of rates found under each Room Type
  • # of Yielded Rates - displays how many rates are yielded under each Room Type

Select the “+” sign next to the Room Type Name to view a list off all the Rates that are found under the selected Room Type.

The columns are:

  • Room Type - the Room Type where the rate is found
  • Rate - the name of the Rate Plan
  • Period - displays if the rate is daily, weekly or monthly rate
  • Scope - displays if the rate is public or private
  • Yield - unchecked means no yielding has been setup, checked means yielding has been setup

Select the desired Room Type

To begin yielding, ensure the black arrow is pointing towards the desired Room Type for yielding, and select the View Rate Yields button located at the bottom of the screen.

Select the desired Room Type

If the incorrect Room Type was selected by accident, use the Room Type drop down menu at the top of the screen to switch to a different Room Type.

Yield Parameters

  • Select the Rate Plan in the list below where the yielding is to be set up (ensure the black arrow is pointing towards the correct Rate Plan).
  • Click New
Yield Parameters

Enter the following details:

  • Date From & Date To: the range of dates for the yielding
  • Ascending: if the yielded amount is to be added onto the rate check the box next to Ascending. If this box is not checked, the yield amount will be deducted from the rate.
  • Flat Amount: If the yield increase is based on a flat amount, place a checkmark next to “Flat Amount”. If the yield increase is based on a percentage, do not place a checkmark next to “Flat Amount”
  • Max Value: If the yield is “Ascending”, a Max Value can be entered as a ceiling. This means the rate will not be available once it reaches this amount. This can be used as a method to "Close Out" this rate once it reaches a certain occupancy level.

Click Insert to enter yielding percentages.

Next, in the box above add the desired occupancy ranges and yielding parameters:

  • From (Occ. %) - enter the point the yielding parameter is to begin at. For example: When the property reaches 26% occupancy
  • To (Occ. %) - enter the point the yielding parameter is to end at. For example: When the property reaches 50% occupancy
  • Factor/Flat Amount - enter the Flat amount or Percentage by which the rate will increase/decrease. This is the amount the base rate will fluctuate by.

In the example below, the Best Available rate will increase by $10.00 when the occupancy level is between 26% and 50%.

NOTE: The Remove button can be used to delete an occupancy range if it was entered by mistake.

Continue to select the Insert button to enter all the Yielding parameters that you wish to setup. When finished, select the Save button.

The selected Rate now has the Yielding Parameters applied.

NOTE: To view the updated Yielded Rate, first close out of the Yield Management module, and then reopen it.

Checking the Yield Management

At this point, to view if the Yield Management was setup successfully, proceed to the Inventory Calendar ( F12) and locate some dates where the occupancy fluctuates. Select the Occupied % dial in the top left hand corner to view the Occupancy Percentages below.

Checking the Yield Management

Next, click the View Rates button.

Use the Room Type & Rate drop down menus to select the desired Room Type & Rate, then click the Go button.

Comparing the updated rates with the occupancy percentages, we can see if the Yielding is working correctly.

For example:

  • On July 7th, the Occupancy is at 50%. The rate was set to increase by $10 between 26%-50% Occupancy. The base rate was $200, however on this date it is now $210.
  • On July 8th, the Occupancy is at 55.77%. The rate was set to increase by $20 between 51%-75% Occupancy. The base rate for this date was $225, however it is now $245.
  • On July 11th, the Occupancy is at 76.92%. The rate was set to increase by $30 between 76%-100% Occupancy. The base rate for this date was $200 however on this date it is now $230.

These yielded rates will now be reflected when making a new reservation.

IMPORTANT NOTE:

  • If a guest books a yielded rate and then the occupancy % changes, the rate will not increase/decrease based on the new occupancy. Whatever rate the guest booked will remain on the reservation.
  • If a guest books a yielded rate and then the occupancy % changes, if the guest were to make a change to their booking that affects the rate (ie: the number of people in the room), the new yielded rate will then apply to the booking and the old yielded rate will no longer be available.
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