I am assuming that yield management is the same as revenue management (if it isn't give me your definition and I can work with that.)
While the first answer is extremely correct in that this is a hard question for Yahoo Answers, I think I can help you. Hopefully. :)
Executive Floors in hotels usually occur in larger hotels, usually full service, so the image that those hotels are used to projecting is "luxury travel" The industry has changed such that they want to capture the growing market of "luxury business travel", where many of their travelers are focused on the business aspect of it. If you are a business traveler, chances are you do a lot of travel, so you belong to frequent travel programs (Delta SkyMiles, Mariott Rewards, Hilton HHonors, etc.) Usually it is when you belong to one of these programs you get upgraded to the executive floor. Usually these are nicer floors, or floors dedicated solely to other program members/business travelers. You have less of a chance to be kept awake by a loud TV or children running through the halls. Sometimes the executive floors have their own lounges where they do a continental breakfast or include coupons for a free breakfast in the dining room. They could also include their own concierge. The idea of the executive floor is personalized luxury. This in turn makes the hotel look good because they are looking out specifically for the needs of today's business traveler.
In terms of total revenue I don't really have a good answer for you. There are more expenditures if they have the personal concierge and breakfast, but people will pay to have the personalized luxury. So more money coming in, but more money coming out. Usually in hotels that have executive floors, they have restaurants too. There is just more money incoming and outgoing as limited service properties do.
One of the plus sides of having the executive floors is you can be complimentarily upgraded. So you are giving the traveler the feeling they are getting more for their money hence a feeling of caring and a better value for the room when in actuality the rooms on those floors cost the same amount as every other room in the hotel every day to operate. You can also do this as a service recovery that doesn't cost you revenue. So if a heater breaks in someone's room and the guests are upset because they got too cold last night, didn't want to switch rooms in the middle of the night, and now they are demanding some kind of monetary compensation, you can upgrade to the executive floor to provide them a properly working room, the added benefits to the executive floor, and the sense that this room is somehow better than the room that they were in before was. You do get feedback on how well the room was set up and the value for price paid. The complimentary ugrade will raise that score.
You can also charge more for the priveledge of being on an executive floor. This way you can maximize the revenue you get from having the added benefits of an executive floor.
This question will probably be "too hard" for most people on Yahoo Answers and frankly it is something that needs to be addressed to someone in the Travel and Entertainment business. It may not be a question with a "free" answer. Most people pay for such managerial information.
Anyhow, from my experience it all depends on the type of hotel you want to have. If it is geared toward business travelers then yes, you need the Executive Floors to upgrade special guests or charge a bit more for the extra comfort and/or the special view.
If it is geared towards personal travel then price is very important and people will not care to spend that kind of money.
Finally, if your hotel is targeting the rich and famous, then you should have a large number of "Executive" rooms.
No comments:
Post a Comment