OPERATING STANDARDS - YIELD MGT

Management

RGI is positive within competitive set (check three months)

Monthly performance results compared to budget & previous year by market segment, commenting on results, business mix and other matters

affecting business (check 2 months)

This information is retained for at least 3 years (check)

A ‘reservations on the books’ report or equivalent 12 months out from today, is retained on file monthly, for at least 2 years (check)

The pricing structure is flexible & reflects demand (high/low season, daily (Lose-it rate), within different rate bands (check list of published rates)

Forecasts are calculated by market segment (check 3 forecasts)

10 & 30 day accurate forecasts by day are issued to all operating departments (spot check at least 3)

A calendar of events is in place for a minimum period of one year (check)

A ‘yield’ document/report

[selling calendar] is in place and reviewed and updated

weekly for, and includes: (review 3 reports)

Daily transient separated from group pickup

For at least 12 months

Yield meetings take place weekly (attended by FOM, Res Manager, Sales Manager, Senior Management/GM) & cover the following subjects: (speak to one Executive Member)

Selling strategy for the future 6 months (review 3 months’ reports)

Selling strategy targets for the future 12-18 months (discuss monthly (review 3 months’ reports)

Ceiling and group rates are established with the following in mind: historical data, Rooms-on-the Books, existing group blocks, events in town, competitors (discuss monthly for future 12 months) (review 3 months' reports)

These targets are clearly communicated to Sales, Group Reservations, Reservations & Reception (check reports)

The following management information is tracked daily and kept on file for at least one year (check) No shows Book outs

A procedure for complimentary rooms is in place & they are authorised by senior management only (check comp reservation including back-up)

Reservations

Today’s & future availability & selling strategies are reviewed & updated daily by Front Office management & communicated to all staff at least 3 months out (speak to one member of staff or observe)

Overbooking strategies are set according to historic management information & type of business on the books (speak to FOM/Res manager/ documentation required)

Global II availability matches Availability Board (physical or in Fidelio) (check 2 days)

“Minimum length of stay” & “no arrival” strategies are used to fill gaps in Global II & in-house (check)

Global II

hotel profile print-outs are available & up-to-date

(Check last update)

GDS profiles reviewed once a year (check with staff & print out from agent)

Information on competitor availability is updated at least weekly for the next 7 days, (peak dates identified for the next 4 weeks) & is readily available to all staff (check)

All reservations calls should be qualified to obtain optimum rates (3 calls prior to arrival)

A ‘waitlist’ procedure is in place & followed-up by management daily and includes telephone contact with the customer prior to arrival, if applicable

(test calls/check)

Before a reservation is regretted alternatives are offered (test calls/check)

Global II denial report is checked & actioned at least weekly and acted upon (check denial report)

Previous night booking should be sold for early arrivals and pre-registration procedure is in place (check procedure/test call)

Previous day’s no-shows are followed up by management (check 2 days min)

Future individual reservations are screened for sales leads on a regular basis and is part of FIT marketing (check sales leads folder or similar)

Group Reservations

All enquiries for more than 10 rooms are channeled through the Group/Tour Reservations Department (check)

A client will always have one key contact in the hotel (check & ask questions)

A group enquiry form exists (can be in computer) and is used for all enquiries. It should include group name, contact, booker’s name, telephone number and F&B requirements (check form)

Acceptance of Group reservations is in line with the yield guidelines which are constantly reviewed at yield meetings (check)

Groups falling outside of group guidelines are discussed with FOM/DOS

Booker is called back within one hour, either confirming availability & rate immediately or acknowledging status of booking (check)

A ‘waitlist’ procedure is in place & a referral system to a sister hotel is in operation which includes the agent calling the sister hotel & they in return call back the client (speak to staff)

Regretted business is recorded showing regret reason & reviewed monthly (check with DOS/or Senior Management or Sales Report)

First option date should be agreed within guidelines set and a trace date

Standard Group contracts exist and are prepared under local law (review)

A system is in place to chase bookings on option & tentative (check)

Group blocks are maintained bearing in mind the anticipated pick-up (wash) (discuss)

Materialisation records are kept for all groups (check 2)

Daily activities include checking today’s Group trace report & Group Summary report one month out from today & releasing blocks accordingly (review report)

All group blocks for the next 4 weeks are followed up with the client to check materialisation (check activities/or 1 group)

After departure a follow-up call is made to significant groups to assess satisfaction feedback and further business (check exit interview)

Demand Forecasting

The day to day forecast is for at least the next four months (Current month plus following 3) (verify excel files)

The four month forecasts are updated on a weekly basis (check Pace_p.xls files)

Further forecasts are maintained for the appropriate booking horizon, for a minimum of twelve months (verify Horizon with Group booking report and Excel files)

Forecasts outside of the first four months are updated at least monthly (check Pace_p.xls files)

The forecast is by day, by market segment (80% of business should fall within forecasted segments)

Historical data has been maintained on the forecast spreadsheets (verify historical data has been entered)

Last year data has been entered day of week relative (verify data has been entered day of week relevant)

Events that impact future demand have been identified on an Events Calendar (check group ceiling tab has events)

The events calendar should be maintained on a 12 month rolling basis (check template file or local format)

Denial data is maintained for Global II and the reservations office (check if denials for future and past have been entered)

Pace report is updated at least weekly for the current month and the following three months (verify pace report usage during RM meeting)

Global II / GDS

The hotel has a mechanism for monitoring competitor availability in GDS (verify travel agent contacts or contracted reports)

The hotel has a mechanism for monitoring competitor pricing in GDS (verify travel agent contacts or contracted reports)

The F3/GDS pages in Global II and GDS are up to date and on file (check)

The hotel configuration is on file and up to date (verify travel agent contacts or contracted reports)

Group/Contract Management

The hotel produces group rates that vary during the month based on

unconstrained demand (Verify sales uses group selling strategy report)

The hotel uses group ceilings that vary during the month based on unconstrained demand (Verify sales uses group selling strategy report)

The hotel washed group blocks on spreadsheets at least 90 days (group booking pattern has a bell curve)

Group consultations take into consideration group displacement calculations (check notes or printed copies on unconfirmed business)

Contract consultations take into consideration displacement calculations (check notes or printed copies on unconfirmed business)

Group strategies are evaluated and adjusted as appropriate (incl. definite and tentative groups) (check minutes of yield meetings)

Inventory Management

Appropriate inventory has been maintained in Global II for a rolling 18 months (check minimum of 18 months availability loaded)

Inventory has been loaded against marketing programs (check for closed out rates)

Appropriate inventory controls are deployed on Global II (check if availability restrictions are being used)

Where available, inventory controls should be used on the PMS

(check PMS and / or selling calendars)

Appropriate inventory has been loaded to counteract Sold Out, Fragmented and No Status conditions (check "J" report for next 6 months)

Overbooking - appropriate risks are taken to attain zero walks and no vacant rooms (check number of useable denials - possible walks)

Selling strategies are consistent between reservation system (Global II, PMS & Availability board) (check sync between Global II & PMS)

Performance Measurement

There is a mechanism for measuring the hotel RGI, MPI and ARI against its competitive set in Front Office (check "Compet" file or local equivalent)

Competitive performance is maintained on a minimum monthly basis (check last six months have been updated)

There is a monthly report, that measures performance against plan and previous year (check printout of recaps for last 6 months)

Revenue Management Meetings

The hotel conducts a weekly RM meeting (verify meeting takes place between sales / reservations)

Attendees should be FOM, DOS, Group Sales, Reservations Mgr, GM (verify minutes)

Demand forecast is agreed upon for a minimum of four months (attend a RM meeting)

Competitor information is discussed and analysed) (attend a RM meeting)

Denials from Global II and the reservations department are discussed, future and past (attend a RM meeting)

Group strategies are discussed maintained (attend a RM meeting)

Selling strategy is based on unconstrained demand, set and agreed upon for at least one year, kept (on file) and communicated (attend a RM meeting)