Yielding Tags

The following article explains the concept of Yielding Tags in RoomPriceGenie and how it can be effectively used.

The 'Yielding Tags' Feature

The yielding tags look into the demand of a particular room category type and adjust the price accordingly.

By creating a tagging system, you are able to link rooms into groups of similar room types. Hence, you set up groups of rooms with similar facilities/amenities that you consider will behave in a similar manner. These groups can move prices relative to other groups depending on demand.

Managing Individual room type yielding

Typically, this would mean that you may group all your Double Rooms together as one group, your Single Rooms as another group, and your Family Rooms as a third group. These sets have different target clients.

But we could additionally set a group with a balcony vs a group with no balcony rooms, AC rooms vs non-AC rooms, Seaview vs non-Seaview rooms, etc. as demand for these room types is different throughout the year, right?

RoomPriceGenie estimates the demand for each category by checking the total number of rooms in each group vs the number of rooms sold in that group.

Keeping the above in mind, let us take a look at the following:

What does the above example mean?

This would mean that your double rooms can range between approximately 10% and approximately 50% more than your single rooms taking into account the derivation between those two room categories.

Look at it this way:

The derivation between the double and the single room is set at - 30%.

Scenario 1: The single rooms are selling much quicker than the double rooms. The system picks it up and increases the price for single rooms by + 10%. The double rooms are not selling and the system lowers the prices by - 10%. Thus the new derivation between the double and the single room is now at + 10%.

Scenario 2: The double rooms are getting booked much more than the single rooms. The algorithm suggests rising the prices by + 10%. The single rooms instead are not selling very well and so the prices are getting decreased by - 10%. Now the derivation between the double and the single rooms is at + 50%.

Set up Yielding Tags

The Yielding Tags are intended to be applied to all your categories at the same time by grouping them. So if you set up the Doubles as one set, make sure that the Singles are included in a different set.

Example settings for the Yielding Tag feature

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• Minimum Adjustment and Maximum Adjustment

These set how big the price changes are allowed to be. For example, if Min. Adjustment is ‘-10%’ and Max Adjustment is ‘+10%’, while the standard price was $100 - the new price will move between $90 and $110.

Here, you have to bear in mind the derivation between your different room type categories. Important to consider in setting the maximum range is not letting, for example, your single rooms become more expensive than your double rooms. If you are worried about price crossing, remember that if one category moves down 10% and another one moves up 10%, then the starting derivation between the rooms should be at least 20% (10% + 10%).

• Aggressiveness

Aggressiveness is how sensitive / fast the adjustment moves towards the Maximum or Minimum. Here we would recommend using the default (Medium). If you choose High then it will move very quickly to the maximum, if there is a booking imbalance between room types. And Low may not move fast enough.

 

The following tutorial explains how Yielding Tags can be created in RoomPriceGenie. Editing your existing yielding tags can also be done by following the same:

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