I always begin my classes, seminars, in-company training or start-up meetings in order to define (or redefine!) their business model with three powerful sentences:
1) Revenue / Yield Management is a way to manage hotels focusing on PROFITS and coordinating all the departments of the hotel and all the members of the chain of value.
2) Let’s clarify this once and for all… Your business is NOT selling rooms or F&B… Your business is to satisfy your customer, providing what they need, when they need it, in the way they need it!
3) Main difference between Marketing and Yield/Revenue? TIME! I want to sell NOW for THIS Day/Hour… We are waves managers!!!
We deal with the first and the second key ideas in previous posts. Today let’s focus on the last one!
At the end of the day, Yield/Revenue Management is strongly related to the idea of Servuction. You have to manage the context in which action takes place. So, the duality space and time!
You have queues when everybody wants to use your service at the same time and in the same space BUT you can design a better Servuction in order to avoid that!
We talked about wave management here when we compared Yield/Revenue Managers with surfers. The difference? Surfers adapt to waves. We manage AND create them!
You can apply these ideas in Hotels but also in Restaurants. For instance, managing the waiting list as we saw here OR changing the space and time of different Servuctions focusing on different segments… At 12 you can serve meals to office workers, at 15 to romantic couples followed for a cuisine class in order to repeat the experience at home then, you can serve a meal to students together with a seminar about food and intellectual yield!
“Empty your mind! Be formless! Be like water my friend” said Bruce Lee. To me, it seems a good advice in order to waves management!!!
You can apply these ideas in a thematic park as well.
In a Macro-level seducing customers to make reservations NOW for this specific day…
In a Micro-level seducing customers to go to a specific attraction at the best moment to THEM and to US.
You can use fear: Go now or never
You can use guiltiness: Please, help this specific group…
BUT the best motivation tool is… to seduce them!!!
You can use the ideas of Maslow creating communities and making people member of them. You can use the ideas of Carnegie (Dale) and make them to feel important doing something AND you can provide a better Servuction knowing what is important for the customer (remember in order to know you can ask or watch!) then, customize the Servuction sending customized messages to a mobile app…
* - These attractions have the longest queues, we recommend this one.
* - If you go this attraction right now you will get…Extra points, Access to preferred guest queue… Free use of… a job interview with…
Hungry of more examples? Don’t’ ask me… Ask any of my Touristologists!!! They are the best Yield/ Revenue Managers… the best waves Managers in the entire world!!!!
Do you see queues, complaints and rooms/seats difficult to sell?
We see waves to manage, service recovery opportunities AND Touristology science applied to Yield/Revenue Management!!!