smarter pricing, revenue management and total revenue ... · early 1970’sairlines began...
TRANSCRIPT
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EyeforTravel Asia Summit 2016
Smarter Pricing, Revenue Management
and Total Revenue Management
Tony Gothard
Senior Director Revenue, Sales & Marketing
Wyndham Hotel Group, South East Asia and Pacific Rim
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Who is in the crowd today?
EyeforTravel Asia Summit 2016
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EyeforTravel Asia Summit 2016
Agenda
What is revenue management
A brief history
The revenue optimization model
How we use analytics to effectively predict demand and price our product
Summary
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What is Revenue Management?
“Revenue Management is the application of disciplined analytics that predict
consumer behaviour at the micro-market level and optimize product availability
and price to maximize revenue growth.”
Translation:
Selling the right product to the right customer, at the right time, for the right
price, through the right channel.
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A brief history
Early 1970’s airlines began experimenting with "fenced" pricing such as offering a
discount to passengers who booked more than 21 days in advance
Late 1970’s the US airline industry truly launched revenue management practices after
government deregulation.
1985 American Airlines launched its Ultimate Super Saver fares in an effort to compete
with the low cost carrier PeopleExpress.
Comparisons are made between Airline Industry and Hotel Industry
Late 1980’s Basic yield management practices begin within the hospitality industry and
larger hospitality brands start to experiment with yield management
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Where are we now on the RM
Journey?
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PEOPLE
The revenue optimization model
With the constant evolving there is one model that continues to hold true, one
which combines:
TOOLSPROCESSES
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The PEOPLE
Revenue management affects every department and every person.
GM Sales Finance Marketing
CEO FOM GSA F&B Revenue
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The TOOLS
There are a multitude of different tools – choose what's best for you?
Property Management Systems
Channel Managers
Revenue management systems
Rate arity Report suppliers
Market intelligence providers
Business intelligence tools
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Data
Collection Data
Analysis
Forecasting
Pricing
Inventory
Management
Distribution
Reporting &
Impact
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The PROCESS
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How we use analytics to effectively predict demand and price our product.
Focusing on:
How we collect and use our data
What reports we create and use
What is our data analysis process
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DataMart
Custom
Built
Reports
BI Tool
How we collect and use our data
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Reports we use: Daily Pick Up
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Reports we use: Daily Tracker
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Reports we use: Reservations Activity
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Reports we use: Daily Market Segment
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Reports we use: Day of Week Breakdown
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Reports we use: Market Segment Report
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Our data analysis process
Gather data from BI Tool Internal Data
External Data
Market Reports GDS Reports
Human Intervention
Optimal Pricing
OTA Reports
Determine Pricing
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Any Questions?
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Summary
Total Revenue Management requires:
People – create a culture of revenue management
Tools – choose the right tools for you
Processes –understand the process
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Thank You!
EyeforTravel Asia Summit 2016