Effective Yield Management requires a combination of three simultaneous activities:
The LuxuryRes Pricing Strategy is designed to increase your room revenue. The LuxuryRes Competitive-Set Pricing Strategy (CsPs) is based on both broad market studies and proprietary LXR pricing information. In summary, our data indicates that hotels that maintain LXR’s specified pricing differential relative to their Competitive-Set have an annualized RevPAR that is 3% to 9% higher than their Competitive-Set. When you consider the fact that a 1% increase in a hotel’s RevPAR can translate into a 10% increase in profit, these numbers only increase in significance.
Detailed documents supporting the basis for the LXR CsPs and instructions for implementing a basic Yielding Strategy at your hotel are available on request ...Request Full PDF Document
This Yield Management Strategy is designed to maximize a property’s RevPAR before, during and after a high-occupancy Event such as a major Convention or Holiday. This basic strategy can be adjusted to suit any market.
Strategy Premise —
Strategy Goals —
The following is an example of a very simple, yet effective, yielding strategy. We have chosen to highlight a Tuesday because Tuesdays have historically been the "peak" business travel day in most urban markets.
However, this strategy can be applied to any day of the week with high demand in any market. The underlying assumptions and actions will remain the same.
Based on the historical data in your PMS it is determined that business travel demand peaks on Tuesdays during the fall time period producing ...
Our ongoing commitment to our clients is to supplement our powerful WIRED e-Services with the sharing of our well-informed information and guidance that will help your hotel business thrive. This section outlines several Yield Management strategies that LuxuryRes has found to be particularly helpful to our hoteliers.
An introduction to each strategy is outlined to the left. You may also request a PDF of the full, in-depth document. As always, your LXR team is on hand to help you with any questions you may have.