Revenue Management
Revenue Management, also known as yield management, is a strategic approach large businesses use to optimize their pricing, availability, and distribution of products or services to maximize revenue and profitability. It is an extremely powerful concept largely prevalent in the Hospitality and Airline industries to boost efficiency.
The primary objective is to use data and analytics to dissect revenue streams, predict demand, adjust pricing & inventory, and maximize revenue. In other words, revenue management helps you sell the right product to the right customer at the right price, at the right time, through the right distribution channels, and at the right cost. For example, hotels will be focused on selling the right type of room to the right guest at the right moment, for the right price, through the right distribution channel with the best cost efficiency. Similarly, an airline would be focused on filling seats. While the airline industry (British Airways & American Airlines) pioneered the Revenue Management concept in the 1980s, it is also increasingly used by the Healthcare, Patient Management, Pharmaceuticals, Hotel and Restaurant, Travel, and Car Rental industries.
Your Books Live’s Revenue Management package provides a customized solution for the Hospitality Industry. It boosts efficiency and profitability by continuously reviewing, researching, reporting, and recommending a clear financial picture of your organization.
YBL’s Revenue Management package includes the following services;
Revenue Management Solutions
YBL can provide additional custom services tailored to your needs.
The cost of these services or packages will vary based on each project's size, scope, and length.
Analyze Financials Statements
Analyze prior 18 to 36 months of Revenue Streams.
Identify trends, anomalies, and seasonal variances in revenues.
Establish parameters for budgeting (Min, Max, Avg.)
Review & recommend or create a W/M/Q/Y checklist to measure revenue performance.
Design & implement metrics to measure trends & catch inefficiencies.
Train, coach, counsel, mentor & manage Accounting Lead.
Data Collection & Segmentation
Analyze the Revenue Collection process.
Identify Revenue segments in the Property/Patient Management System (PMS) or the Point-Of-Sale (POS).
Is the ERP catching the details, OR are the segments being lumped? Design & implement metrics to measure trends & detect inefficiencies.
Do you have promotions to match each segment?
Identify sources of revenue - direct calls, 3rd party websites, GDS, tour groups, group bookings, travel agencies, etc.
Forecasting, Planning & Execution
Review/analyze future reservations, forecast demand & plan supply.
Identify what drives the fluctuations in customer demand - tour groups, events, holidays, new businesses/economic growth in the area, and natural events.
Rooms Inventory, Pricing & Distribution Channel Management.
Evaluate
Review/monitor changes to revenue streams.
Actual vs. Budget.
Monthly Summary - Business Intelligence, Insights & Recommendations
Provide a monthly performance summary via email with charts & spreadsheets.
Monitor your books continuously & accurately so they are tax-ready for your CPA.
Identify & report items to be reviewed and addressed by the client.
Note
Businesses with annual revenues over $5 million will require a free consultation to determine the complexity of the business operation based on sales volume, transactional activity, number of departments or revenue centers, etc.
The service items listed above are generalized. The service package will be configured to encompass each business's unique characteristics.
YBL can customize this package by adding or reducing services based on client requirements.
This package is available quarterly as well - confirm package pricing.
Ready to Propel Your Business Forward?
Let us create Revenue Management solutions designed specifically for your business to maximize revenue and profitability. With our financial expertise, we’ll give your business a real advantage!
