How suppliers revenue. you pay and what you can do. management affects the price. about it
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1 How suppliers revenue management affects the price you pay and what you can do about it Moderated by Andy Hoskins, Editor, The Business Travel Magazine Scott Gillespie, Managing Partner, tclara Chiara Battifarano, Revenue Manager, Melia White House Carole Poillerat, Executive Director, Industry Relations, HRS Gary Hance, Director of Operation Improvement & Yield, ATPI
2 Definition of Revenue Management selling the Right Product through the right channel to the Right Customer at the Right Price at the Right Moment
3 Who Uses Revenue Management?
4 Revenue Management Knowledge Clients Demand Pricing Events History Competition Distribution Systems...and a good measure of gut-instinct
5 Revenue Management Cycle Reporting & Impact Data Collection Data Analysis Distribution Forecasting Inventory Management Pricing
6 The Chain of Distribution
7 Who is the Revenue Manager?
8 Numerous dimensions define a rate Dimensions of a hotel rate Room category (Standard, Superior, Comfort etc.) Occupancy (EZ, DZ) Additional services (breakfast, wifi, parking) Price Off-time (trade fair and cut-off periods) Discount (fix/dynamic) Currency Taxes Type of availability (availability price guarantee until the last room: LRA vs. Non-LRA) Hotelrate Minimum stay Validity(e.g. 1 year) Type of reservation (with & w/o credit card) Time of payment (pre-paid, post-paid) Cancellation (3 days in advance, 6pm on day of arrival) Rising complexity of hotel rates due to increasing professionalisation of procurement and sales as well as companyinternal and company-external factors, e.g. 1) Increasing requirements of travellers Wifi 2) Increasing requirements of ways of booking Rate dimensions for later planned vs. actual comparison
9 The best buy principle ensures best available rate across all rate types Sourcing Rate Loading Rate Protector Search & Book Traveller Services Payment Solutions Expense Management Smart Data Risk Management Rate 14% Ø savings vs negotiated rate Corporate negotiated rate Rates negotiated by corporate customers BAR Best available rate on spot market via all connected OTAs & GDS HRS corporate rates HRS exclusive, discount in more than 40,000 hotels Time 11
10 The Rebooking service continuously identifies the best hotel offer Traveller Travel Manager Traveller books hotel The Engines searches Same hotel room with better price Same hotel with better room for same price The Engine rebooks best offer automatically in case of significant difference savings The engine inform s traveller about new pricing & savings Dashboard: Clear transparency about unexpected savings 20% rebooked 10% average saving per rebooking 2% total savings of total spend 12
11 Revenue Management 101 More price points = more revenue Illustrative 100-seat Aircraft 500 X 100 Seats 900 X 30 Seats 400 X 70 Seats 1,500 X 10 Seats 1,200 X 20 Seats 700 X 30 Seats 300 X 40 Seats 50,000 55,000 72,000
12 How Do Buyers Benefit From Revenue Management? 1,500 High prices help ensure last-minute availability 1, Low prices make planned trips more affordable Y B M H K L U T X Airfare Inventory Booking Classes
13 Fare Ladder Discount Implications Airlines cannot afford to offer deep discounts on their low-bucket inventory 1,500 Higher discounts 1, Low or no discounts Y B M H K L U T X Airfare Inventory Booking Classes
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