“Selling Rooms and Services at the Right Price…

at the right time to the right people” is how Wikipedia defines revenue management which it notes is also called yield management. The trick or key, of course, is making informed decisions to come up with this “right” price.

Why are so many people afraid of the term “Revenue Management”?
Why do so many sales and marketing people shy away from the topic?
Everyone has probably balanced a check book; may be even set up a household budget. Haven’t you ever decided the best time to get your air conditioner replaced based on the relatives coming to visit? That’s a form of revenue management – deciding when to spend your money and how to do so. If you’ve ever worked as a consultant or looked for a job and decided what base salary you are able to accept, you’ve also figured out what to charge your future employer for your services at that time. Yes, I’m oversimplifying, but you get the idea.

They say that revenue management began with the airline industry – selling seats at various prices to maximize their revenue. In some cases, demand-based pricing is underused in service industries because some perceive it to be unfair. Studies have shown that if you frame this pricing as a discount or coupon they’re received in a better light.

So, if you’re trying to make informed decisions about pricing strategies; or need to develop a better history of demands including your past groups, past events, etc. or just trying to analyze your market…

Of if you are in sales/marketing and want to find out why these RM’s are requesting certain data from you…

…find out some of the answers to these questions and more, come to our informative event, created by our Revenue Management committee, on August 19th at the Hyatt Coral Gables. Register online at www.hsmaisouthflorida.org

Hope to see you there! Best, Julie Wernick, HSMAInsider, and Managing Director, HSMAI-South Florida chapter.