Yield & Revenue Management consists of developing strategies to analyze the characteristics and behavior of consumers in order to offer the most appropriate service for each one of them.

In hotel and tourism sector, Yield & Revenue Management is applied to be able to make predictions and optimize room availability and prices. In this way, it is possible to obtain a higher yield and a higher revenue volume of the tourist accommodation. To apply this method successfully, you must take into account the following factors:

  • The capacity, orientation and capability of your accommodation.
  • Know your customer profiles. Each guest has their own needs and requests.
  • Study the supply and demand. Depending on the time of year and the events held in your city, the stipulated price per room may vary.
  • The anticipation of the reservation may affect the price per room.


Implementing Yield & Revenue Management strategies have multiple advantages for your establishment:

You will achieve a higher occupancy percentage. You will be able to design more attractive offers for each type of guest. Thereby, you will be able to book more rooms, as much in high as low season.

It will increase your income. You will be able to identify your clients needs on any date. As a result, you will find the perfect room prices. These prices will not be as high as to keep potential guests away, and they will not be as low as deprive you a higher profit margin either. At the same time, you will be in a position to apply upselling and cross-selling strategies to achieve even more profits.

Improve your hotel performance. The way your business work will change considerably. But above all, will change the interaction between the areas of Marketing and Customer Service. This results in a better consumer experience. At the same time, you will have a better knowledge of your guests expectations and thus allows you to offer them a better service during they stay.

How to apply it

To apply this technique in your establishment, you must carry out a series of measures:

On the one hand, start by making an income history and get an average of sales per month and per year. At the same time, you must establish which businesses are your direct competitors by the similarity in the offer and quality of your services and by the proximity to your location. In general, your prices should not be far above or far below your competitor’s rates.

On the other hand, you must elaborate a calendar with the vacation periods and events that may attract the tourist’s attention. Thereby, you can create attractive campaigns with enough advance. It is also convenient to set different objectives, depending on the time of the year. For example, the highest tourist’s demand periods, the goal could be to achieve a higher ADR (average daily rate per room). During the low season, increasing the level of hotel occupancy should be a priority.

Finally, knowing your client and their needs is also a very important factor. This will allow you to sell the right room to the right customer at the right time. With all these clear concepts, Yield & Revenue Management strategies can give your business the impulse it needs to keep growing.

Do you need help to apply the Yield & Revenue Management?

At Roitels, we are experts in Revenue Management. If your hotel establishment needs some help to apply Yield & Revenue Management, to develop a clear pricing strategies, to study of the competition or you are interested in receiving any kind of advice, do not hesitate to contact us. We will be pleased to help you in any query you have.  Do not waste more time and start maximizing your benefits!