Yieldable vs. Non-Yieldable Segments

From Xotels – Hotel Revenue Management Consulting, We’d like to ask you 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 in hotels? These questions are crucial for your hotel revenue management operations and strategy.
The non-yieldable market segments are the bookings that 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?
Of course, your accounts should be producing year through. Still, in hotel revenue management, it is recommended to evaluate 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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About the Author: Patrick Landman

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.