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Yieldable vs. Non-Yieldable Segments

How much of your business is yieldable? And how much of your business in non-yieldable? Or how much of your business allows you to really apply revenue management? These questions are crucial for your hotel revenue management strategy.

 

The non yieldable market segments are the bookings which you can not reject even if you could sell at a higher rate on those dates i.e. Last Room Availability (LRA) corporate contracts, Tour Operators allotment, etc.

 

yieldable-rmb

You should have a clear picture of when your contracted accounts produce. How many times in the year do you have to accept contracted bookings when you could sell at higher rates?
 
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Of course your accounts should be producing year through. Still it is recommended to make the evaluation to recognize which months you may be losing revenue against the months the accounts bring additional revenue. The balance should of course be positive!
 

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