Call Yield Management Within The Hotel Industry

 Call Yield Management Within The Hotel Industry

 

Call Yield Management: A call yield management system is one that enables hoteliers to predict and understand their telephony usage in order to optimise their revenue and create more High Yields guest loyalty.

Why use Call Yield Management?

Telephone calls are an ideal service to optimise with yield management. The setup of a private telephone network is expensive, both in terms of installation and configuration, therefore it is capital intensive. There is no revenue to be gained from a telephone network unless calls are made, therefore the service is perishable. A telephone network has a stable and average variability of both value (intensive competition has reduced price gaps between local, national and international calls) and demand (tariff reductions mean that people don’t wait until particular hours of the day to make calls).

For hotels, a call accounting, sometimes called a call logging system, is a vital part of call yield management. Historically, a hotel could rely on guests making direct dial phone calls from their rooms. The telephone department operated at around an 80% profit margin and phone revenue could account for around 3% of the total annual revenue for the hotel. It is a fact that over the past few years telephone revenues have been dropping dramatically. There are many reasons for this but the most prevalent are alternatives such as charge cards and mobile phones that have increased their market penetration, while rapidly decreasing their costs. Wireless hotspots and in room HSIA (High Speed Internet Access) have also increased the ease with which people can use alternative forms of communication, other than simple dial up, to access email and instant messaging applications.

The benefits of a call logging system are widely known and the reports from a hotel’s call accounting system can be used to determine the calling patterns of their guests, such as:

on/off peak calling periods

calls to specific numbers (e.g. Internet providers)

calls to particular regions/countries

whether guests are making short or long duration calls

are guests receiving more calls than they are making (if so, why?)

A call accounting/call logging system can also alert hoteliers to evidence of misuse or telephone fraud by both guests and staff. Telephone bills can be reconciled against the call accounting/call logging reports to ensure that carrier bills are correct. The hotel call accounting reports can identify out-of-service trunks, equipment and lines that the hotel is paying for that are either under utilised or not being utilised at all. These are all areas that, left unmonitored, could very easily erode profit for a hotel.

 

 

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