By EyeforTravel.com Correspondent in Amsterdam<br><br>RM performance measurement is key when looking to invest/analysing
Published: 24 Nov 2005
By EyeforTravel.com Correspondent in Amsterdam
RM performance measurement is key when looking to invest/analysing investments already made in RM, according to Delfo Melli, director - International business development, Optims.
Rather than just being a vendor that offers software for revenue management, Optims says it differentiates itself by enhancing ROI of its clients by offering them tangible evidence of forecasting accuracy, less data problem, and imparting training and knowledge.
Melli, one of the speakers during the EyeforTravel.com's 'Revenue Management and Pricing in Travel Europe 2005' being held in Amsterdam, said, "Performance monitoring supports RM teams by providing tangible evidence of revenue gains, performance of RM programmes and systems rely on key factors - data quality, forecast accuracy and stability, load factor/occupancy and skills and usage of the RM tool," he said.
On some of the concerns related to RM, Melli said that RM vendors are prone to advocate that successful revenue management programmes will result in substantial revenue increases and decision-makers also seek means of performance measurement tools to justify investments in RM programmes. So the company embarked on RM performance management programme in 2001, in conjunction with hospitality and transport sectors. The aim was to design tools and services that provide tangible evidence/impact of RM. The focus was on monitoring key factors that affect RM performance - quality of production data; data entry errors, new configuration in PMS, CRS; accuracy and stability of forecasts, usage of RM tool and to provide regular KPIs on RM performance.
He added that good quality data is the key. "Need to ensure date is coherent and monitor data for errors.
Even without looking at forecasting, we found over 5 per cent increase in forecast quality. Also it results in reduction of polution of models."
Referring to internal analysis related with forecast accuracy measurement, he said an accurate forecast increases RM performance. It also brings higher confidence in RM systems and gives Minimum Average Percentage Error (MAPE).
On revenue performance measurement, Melli said the BOA (Business Opportunity Assessment, value in % between 0 and 100%) gives the performance of the joint user and RM system in terms of revenue, and yield impact represents the revenue increase due to the application of yield recommendations.
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