Let's define first.  


Revenue Management is selling the Right

  • Product to
  • The right customer
  • At the right time
  • For the right price


Yield Management focuses primarily on maximizing revenue through analytics-based inventory control in balancing

  • Perishable inventory
  • Customers booking in advance
  • Lower cost competition


MTEL's blended approach to Revenue/Yield Management model follows the same principals to develop a model for a specific hotel asset through extensive research and analysis including:


  • Collecting, storing and analyzing historical data for inventory, prices, demand, and other factors from sources such as hotel property management system, franchise, Smith Travel Research (STR) etc
  • Establishing market segmentation for market based pricing and revenue maximization 
  • Forecasting demand, inventory availability, market share, and total market
  • Evaluating multiple options on how to sell, where to sell your product and to whom to sell your product by finding the ideal relationship between several variables through complex models and analysis
  • Continuous re-evaluating variables such as prices, products, and processes to maximize revenue and to move dynamically with the market


The MTEL Revenue Management model increases the revenues through four primary controllable variables:


Pricing:  MTELdevelops disciplined pricing strategies that closely follow market conditions and demand, especially at a segment level. The model creates pricing tools that change frequently to optimize variables such as price sensitivity, price ratios, and inventory to maximize revenues.


Inventory:  MTEL focuses on controlling room inventory and allocate optimum pricing overcome weak/strong demand and gain market share.  Of course, MTEL never establishes a price point which is less than the marginal cost.


Marketing:  Through its marketing efforts MTEL establishes a long term base business, although at a sub market price, by offering special price to SMERF groups, tour bus/coach, airlines crew etc


Channels:  MTEL Revenue Management model strategically drive revenue through different distribution channels keeping in mind customers with different price sensitivities.  The model establishes appropriate inventory and discounts to online travel agencies such as Expedia,, Priceline, Orbitz, Travelocity, Hotwire etc.


If you're in search of a Revenue/Yield Management team, contact us to discuss how we can help you accelerate your property to the top of your competitive set.