Yield & Revenue Management - International … - Matthias.pdf–Efficient sales tools to drive management reporting –Efficient management tools to drive the sales team & optimize

Yield & Revenue Management

Presented by Matthias Froese

2010 ICCA Conference

Hyderabad, India

Presentation NameSlide 2 of ZZ

Agenda

•What is Yield Management?

•The Yield Management Process

•Using Ungerboeck Software to Drive Yield Management

•Other New Developments

•Q & A


Yield Management Defined

•"Understanding, anticipating, and influencing customerbehavior in order to maximize profit contributions and/oreconomic impact from perishable fixed-cost resources.”

•Yield Management is an Iterative Process


Rooms/SeatsConsumer

Standard

Quantity

Cost

EventsCommercial

Custom

Quality

Impact


Yield Management Process – Core Steps

•Understanding Current Market Position & Demand

•Defining and Executing Marketing and Sales Strategies

•Setting, Meeting, & Exceeding Customer Expectations

•Accounting & Financial Analysis

•Reviewing, Refining, & Repeating Your Process


Understanding Current Market Position & Demand

• If you don’t know where you are, you can’t know where togo

•Focus around:

– Current & Forecasted Utilization

– Profitability

– Economic Impact


• By Space or Space Type

• By Event or Event Type

Ungerboeck Tools – Venue Utilization


Ungerboeck Tools – Utilization by Event Type


Ungerboeck Tools – Venue Utilization by Space


Ungerboeck Tools – Utilization by Space Type


Profitability – Daily Revenue & Cost Analysis

•What is most profitable and when?


Revenue & Profit Analysis by Event Type

•Which events are most profitable and when?

•Does “diversification” help or hurt?


Revenue Analysis – Searching for Seasonal Trends

•Where are the biggest areas for improvement?


Lost & Declined Business Analysis

•What do we not get & why?


Other Analysis Tools

•Best Customers

•Best Fit Customers Types

•Event Profit & Loss

•Event Budget vs. Actual

•Contract Pipeline


Defining and Executing Marketing & SalesStrategies

•How will we influence customer behavior generatedemand?

– Aim High… Really High – 100%+ Utilization

• “Aim for the moon. Even if you miss, you’re sure to landamong the stars.”

– Efficient sales tools to drive management reporting

– Efficient management tools to drive the sales team &optimize event mix


Management – Pricing Strategies


Management - Opportunity Pipeline & Sales Goals

•Reviewing pipelines & setting sales goals gets sales andmanagement on the same page


Management – Availability & Booking

•Enhanced Calendar



•Quickly review demand by utilizing new generic spaces



•Set demand indicators and communicate important infoto sales directly through the booking calendar


Sales Tools – Event Requirements & Valuation

•Preliminary Event Estimates by Service Types


Sales Tools – Valuation

•Valuation designed by Event Type & Spend Class

•Event Profitability By Service; Economic Impact


Sales Tools – Event Versioning – What If?

•Multiple Objectives– Maximum Yield (Profit Contribution)

– Client Budget Requirements

– Various Event Agendas

•Multiple Variables– Event Dates

– Event/Function Attendance

– Space Composition

– Function Schedule

– Event Requirements

– Price Lists

– Service Order Items

– Item Quantities

– Payment Terms

– Event/Function/Order Notes


Our Venue

Small Meeting Rooms

Air Wall

Solid Wall

Large Meeting Rooms

Venue Capacity: 250,000 ft2

4 Halls @ 50,000 ft2

1 Ballroom @ 12,000 ft2

8 Large Meeting Rooms @ 3,000 ft2

7 Small Meeting Rooms @ 2,000 ft2

5 Hotels @ 300 Rooms Each


4 Halls @ 50,000 ft2






A) Engineering Conference & Tradeshow, High Spend, 650 Attendees; Status: Proposal

Dates: In: Fri 03/06/09 Event: Sat 03/07/09 – Tue 03/10/09 am Out: Tue 03/10/09 pm

Space: 2 Halls, 5 Large Meeting Rooms @ 3,000, Ballroom – Monday; $57,000 Net

Services: $95,000 Net

Hotel: 2,000 Room Nights, 600 Peak Nights

B) Religious Conference, Low Spend, 500 Attendees; Dates Firm; Status: Tentative

Dates: Sat 03/07/09 – Sun 03/08/09

Space: 6 Small Meeting Rooms, Ballroom; $8,000 Net


Hotel: 350 Room Nights, 300 Peak Nights, 50% Double Occupancy

C) Corporate Seminar (Local Employer), High Spend, 300 Attendees; Status: Firm

Dates: Mon 03/09/09 – Wed 03/11/09

Space: 1 Large Meeting Room, 6 Small Meeting Rooms; $6,000 Net


Hotel: 300 Room Nights, 100 Peak Nights

D) Corporate 100th Anniversary Celebration, High Spend, 1500 Attendees; Status:Proposal

Dates: In: Fri 03/06/09 pm Show: Sat 03/07/09 Out: Sun 03/08/09 am

Space: 1 Hall, 2 Small Meeting Rooms, Ballroom; $45,000 Net



E) Italian Masters – Art Exhibition, Medium Spend, 20,000 Attendees; Status:Proposal

Dates: In: Wed 03/04/09 Show: Fri 03/06/09 – Sun 03/15/09 Out: Mon 03/16/09

Space: 1 Hall, 3 Large Meeting Rooms; $75,000 Net



So what's the problem?opportunity

Economic Impact:4 x Venue Profit ContributionPlus:High Spend: $400 x Room NightsMed. Spend: $300 x Room NightsLow Spend: $200 x Room Nights

Economic Impact:4 x Venue Profit ContributionPlus:High Spend: $400 x Room NightsMed. Spend: $300 x Room NightsLow Spend: $200 x Room Nights


4 Halls @ 50,000 ft2






4 Halls @ 50,000 ft2






Yield Optimization Schema

DemandEvents

ResourcesSpace

LodgingServices

AssumptionsCostYield

Activity

ConstraintsVenue Capacity

Event Mix

Business GoalCustom Formula(Profit ContributionEconomic ImpactAttendance …)

DemandEvents

ResourcesSpace

LodgingServices

AssumptionsCostYield

Activity

ConstraintsVenue Capacity

Event Mix

Business GoalCustom Formula(Profit ContributionEconomic ImpactAttendance …)

Optimization

Modeling Engine

CustomizedSpecifications

Optimization

Modeling Engine

CustomizedSpecifications

OptimalBookingSchedule

ResourceAssignments

OptimalBookingSchedule

ResourceAssignments

By USI ClientServices

By USI ClientServices

Modeling Constraints & Costs

• Global• Event

• Direct Cost• Customer Acceptance Cost


Management – The Yield Optimizer

•Economic Impact

•Profitability

•Custom Formula


Setting, Meeting, & Exceeding Expectations

• Impeccable service that adds real value to your customerand your customer’s customer is critical to drivingdemand

•Create new revenue streams with new & unexpectedservices


A New Service Level – Customer Collaboration

MeetingPlannersMeetingPlanners

ClientsClients

ExhibitorsExhibitorsExternal

Catering

External

Catering

SpeakersSpeakers

SuppliersSuppliersUngerboeck

EBMS


Collaboration & Information Sharing

•Send a link directly to an event to a client or serviceprovider

•Send a link to a client and allow them to review, commenton, or change information instead of exchanging emailsand faxes!


Increase Productivity. Increase Satisfaction.Increase Demand

•Focus your team on planning events, not paperwork

•Less stress for event coordinators & clients

•Save your client’s time

•Reduce last minute requests

•Become easier to do business with


New Revenue Opportunities

•Registration

•Speaker & Abstract Management

•Sponsorship - Electronic Signage


Pace Reporting & Upselling


Accounting & Financial Analysis

• Invoicing

•Event Settlement

•General Accounting Distribution


Financial Analysis

•Event Data Mart


Financial Analysis

•Event Profit & Loss

•Venue Profit & Loss

•Departmental Performance


Review, Refine, & Repeat

•Economies & customer needs are always changing.

•Yield management must be a constant process of analysis& adjustment to the market


•4 Easy Steps

1. Understand your supply & demand conditions

2. Develop corresponding pricing strategies

3. Implement marketing programs

4. Optimize choice of opportunities

•And Two Tough Ones:

5. Sell more than you can deliver

6. Then service them all impeccably!

So what's the problem?opportunity

Yield & Revenue Management

Presented by Matthias Froese

2010 ICCA Conference

Hyderabad, India

Documents

Yield & Revenue Management - International … - Matthias.pdf–Efficient sales tools to drive management reporting –Efficient management tools to drive the sales team & optimize