Yield & Revenue Management. Presented by Matthias Froese 2010 ICCA Conference Hyderabad, India
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1 Yield & Revenue Management Presented by Matthias Froese 2010 ICCA Conference Hyderabad, India
2 Slide 2 of ZZ Agenda What is Yield Management? The Yield Management Process Using Ungerboeck Software to Drive Yield Management Other New Developments Q & A
3 Slide 3 of ZZ Yield Management Defined "Understanding, anticipating, and influencing customer behavior in order to maximize profit contributions and/or economic impact from perishable fixed-cost resources. Yield Management is an Iterative Process
4 Slide 4 of ZZ Events Commercial Custom Quality Impact Rooms/Seats Consumer Standard Quantity Cost
5 Slide 5 of ZZ 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
6 Slide 6 of ZZ Understanding Current Market Position & Demand If you don t know where you are, you can t know where to go Focus around: Current & Forecasted Utilization Profitability Economic Impact
7 Slide 7 of ZZ Ungerboeck Tools Venue Utilization By Space or Space Type By Event or Event Type
8 Slide 8 of ZZ Ungerboeck Tools Utilization by Event Type
9 Slide 9 of ZZ Ungerboeck Tools Venue Utilization by Space
10 Slide 10 of ZZ Ungerboeck Tools Utilization by Space Type
11 Slide 11 of ZZ Profitability Daily Revenue & Cost Analysis What is most profitable and when?
12 Slide 12 of ZZ Revenue & Profit Analysis by Event Type Which events are most profitable and when? Does diversification help or hurt?
13 Slide 13 of ZZ Revenue Analysis Searching for Seasonal Trends Where are the biggest areas for improvement?
14 Slide 14 of ZZ Lost & Declined Business Analysis What do we not get & why?
15 Slide 15 of ZZ Other Analysis Tools Best Customers Best Fit Customers Types Event Profit & Loss Event Budget vs. Actual Contract Pipeline
16 Slide 16 of ZZ Defining and Executing Marketing & Sales Strategies How will we influence customer behavior generate demand? Aim High Really High 100%+ Utilization Aim for the moon. Even if you miss, you re sure to land among the stars. Efficient sales tools to drive management reporting Efficient management tools to drive the sales team & optimize event mix
17 Slide 17 of ZZ Management Pricing Strategies
18 Slide 18 of ZZ Management - Opportunity Pipeline & Sales Goals Reviewing pipelines & setting sales goals gets sales and management on the same page
19 Slide 19 of ZZ Management Availability & Booking Enhanced Calendar
20 Slide 20 of ZZ Management Availability & Booking Quickly review demand by utilizing new generic spaces
21 Slide 21 of ZZ Management Availability & Booking Set demand indicators and communicate important info to sales directly through the booking calendar
22 Slide 22 of ZZ Sales Tools Event Requirements & Valuation Preliminary Event Estimates by Service Types
23 Slide 23 of ZZ Sales Tools Valuation Valuation designed by Event Type & Spend Class Event Profitability By Service; Economic Impact
24 Slide 24 of ZZ 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
25 Slide 25 of ZZ Our Venue Venue Capacity: 250,000 ft2 4 50,000 ft2 1 12,000 ft2 8 Large Meeting 3,000 ft2 7 Small Meeting 2,000 ft Rooms Each Large Meeting Rooms Small Meeting Rooms Solid Wall Air Wall
26 Economic Slide 26 of ZZ Impact: 4 x Venue Profit Contribution Plus: High Spend: $400 x Room Nights Med. Spend: $300 x Room Nights Low Spend: $200 x Room Nights opportunity So what's the problem? Venue Capacity: 250,000 ft2 4 50,000 ft2 1 12,000 ft2 8 Large Meeting 3,000 ft2 7 Small Meeting 2,000 ft Rooms Each 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 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 Services: $15,000 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 Services: $25,000 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 Services: $45,000 Net Hotel: 800 Room Nights, 800 Peak Nights 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 Services: $70,000 Net Hotel: 1200 Room Nights, 400 Peak Nights
27 Slide 27 of ZZ Yield Optimization Schema Demand Events Resources Space Lodging Services Assumptions Cost Yield Activity Constraints Venue Capacity Event Mix Business Goal Custom Formula (Profit Contribution Economic Impact Attendance ) Modeling Constraints & Costs Global Event Direct Cost Customer Acceptance Cost Optimal Booking Schedule Optimization Modeling Engine Customized Specifications Resource Assignments By USI Client Services
28 Slide 28 of ZZ Management The Yield Optimizer Economic Impact Profitability Custom Formula
29 Slide 29 of ZZ Setting, Meeting, & Exceeding Expectations Impeccable service that adds real value to your customer and your customer s customer is critical to driving demand Create new revenue streams with new & unexpected services
30 Slide 30 of ZZ A New Service Level Customer Collaboration Exhibitors External Catering Clients Meeting Planners Speakers Ungerboeck EBMS Suppliers
31 Slide 31 of ZZ Collaboration & Information Sharing Send a link directly to an event to a client or service provider Send a link to a client and allow them to review, comment on, or change information instead of exchanging s and faxes!
32 Slide 32 of ZZ 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
33 Slide 33 of ZZ New Revenue Opportunities Registration Speaker & Abstract Management Sponsorship - Electronic Signage
34 Slide 34 of ZZ Pace Reporting & Upselling
35 Slide 35 of ZZ Accounting & Financial Analysis Invoicing Event Settlement General Accounting Distribution
36 Slide 36 of ZZ Financial Analysis Event Data Mart
37 Slide 37 of ZZ Financial Analysis Event Profit & Loss Venue Profit & Loss Departmental Performance
38 Slide 38 of ZZ Review, Refine, & Repeat Economies & customer needs are always changing. Yield management must be a constant process of analysis & adjustment to the market
39 Slide 39 of ZZ opportunity So what's the problem? 4 Easy Steps Understand your supply & demand conditions Develop corresponding pricing strategies Implement marketing programs Optimize choice of opportunities And Two Tough Ones: 5. Sell more than you can deliver 6. Then service them all impeccably!
40 Yield & Revenue Management Presented by Matthias Froese 2010 ICCA Conference Hyderabad, India
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