A TOUR OPERATOR/DMC REVENUE MANGEMENT OVERVIEW

SELLING Original (accomodation-based) publisehd by THUAN DAO

Adapted by MARCELLO BRESIN

ACCOMODATION Hotels, apartment, villas

PACKAGES Hotel + Flights, etc

THE TOURS Multi-day itineraries

RIGHT PRODUCT TRANSPORT Flight, transfers, cruises

EXCURSIONS Same-day tours, tickets

Revenue Management tactics &
OTHERS Insurance, rent-a-car, etc Revenue Management Strategies
techniques
Short / Long term Control inventory & price

TO High demand: Maximize retail price Selling price depending on

difference between booking date/
B2B: Data collection Low demand: Maximize volume dept date

Other wholesalers, TAs

Historical data Operations review Open/Close/Adjust rate
SEGMENTATION
Corporate Reservation on the books Maximize total revenue Open/Close/Limit inventory
* Product sensitivity 3rd Party: OTAs, Groupon,
Pick up Budgeting Open/Close/Limit segment
THE * Time sensitivity
RIGHT CUSTOMER * Price sensitivity
TMC/ other DMCs Booking pace Marketing Open/Close/Limit channel
* Buying behaviour
* Imformation & booking
Consortia Booking window
channels Statistic & Analysis
B2C: Booking curve

Direct consumers/End users Same time last year Forecasting demand

Trend & Seasonals Rolling 12 months forecast

Market rate analysis Current and next 3 months

Air traffic By segment

FOR
By day of week

Retail rate By destination

Packages By product/package
THE By channel
PRICING STRUCTURE Wholesales rate
RIGHT PRICE
Corporate rate Revenue x product

Group negotiated rate

SWOT Revenue Management process Revenue Management goals

AT Competitors Establish the baseline Maximize profits

Day of week Events Understand causes Driving KPIs to achieve the budget
Market intelligence
Month of year Demand generators Develop a strategy Guest experience satisfaction
THE
SEASONALITY
RIGHT TIME Peak, shoulders and low Implement the changes Reduce costs
Ecomomy news
seasons

Hot, Warm, Cold periods Industry news Monitor the impact Optimize operational aspects

Repeat! Avoid "information silos"

THROUGH
Direct

OTAs

Retailers Pick right distribution channel to

THE Optimize
DISTRIBUTION maximize sales but minimize cost of
RIGHT CHANNELS Commission
Franchises distribution

Brand.com

Social Media