Yield Management is a management system generally used in the service sector, such as hotels, airlines and car rental companies. This practice consists of dynamically adjusting prices according to demand and availability in order to optimise revenues.
This practice is emerging in new sectors such as museums, particularly in English-speaking countries. In the current economic climate, optimising costs is often a priority for public institutions. Techniques such as audience segmentation, dynamic pricing, data and trend analysis are used to make the best decisions.
However, for a Yield Management strategy to be truly effective, it is imperative to understand and take into account the influence of footfall on the results obtained.
In this article, we'll explore how accurate monitoring of footfall can influence Yield Management and how you can leverage this data to make savings!
Visitor numbers: the key of Yield Management
Attendance (changes in the number of admissions) or the occupancy rate (changes in the number of people present in the venue) play a fundamental role in the successful implementation of Yield Management on several points:
Forecasting demand
Current footfall provides valuable information for predicting future demand. By analysing past footfall trends and observing customer behaviour patterns, managers can more accurately anticipate periods of high or low demand. They can then proactively adjust prices to maximise revenue.
Offer dynamic tariffs to promote off-peak hours and increase revenue during peak hours
Real-time occupancy allows dynamic pricing based on current demand. When occupancy is high, prices can be adjusted upwards to take advantage of increased demand. Similarly, when occupancy is low, special offers or discounts can be offered to stimulate demand and optimise occupancy.
Managing capacity
Visitor numbers also influence capacity management. By understanding expected occupancy levels, managers can adjust the availability of products or services to best meet demand. For example, in the hotel sector, high occupancy levels may lead to a stricter allocation of available rooms, while lower occupancy levels may allow greater flexibility in managing bookings.
How can you measure footfall and integrate it into your Yield Management tools?
To make the most of visitor data in your Yield Management tools, it is essential to have precise methods for measuring it.
Automatic sensors
People sensors can now be used to automatically measure footfall in all kinds of places, such as shops, museums, swimming pools and so on. These sensors provide real-time data on the number of people present, enabling proactive demand management.
Advanced booking systems
Reservation or ticketing complement real-time counting data. By examining traffic on these tools, conversion rates and usage trends, managers can obtain valuable information about user behaviour.
Predictive analysis
Once all this data has been collected, advanced analysis using predictive analysis algorithms can be used to modify existing processes, reorganise workloads and feed forecasts back into your sales tunnels to adjust their pricing strategy accordingly.
By understanding the influence of footfall on results and adopting effective methods for measuring footfall, institutions, whether private or public, can optimise their costs and revenues and improve their profitability through demand anticipation, dynamic pricing or capacity management. By integrating these concepts into your management approach, you will be better equipped to maximise your company's revenues and guarantee its long-term success!