At FLYR, we are committed to provide you with the most optimal strategy that maximizes your revenue through both dynamic pricing and inventory optimization. For more details on how FLYR prices nights in the future, check out this article.
When and why do we restrict business?
Our inventory optimization solution is designed to enable properties to maximize their revenue by strategically managing inventory and implementing restrictions on low-value bookings during high-demand periods.
Restrict & Maximize - By restricting low-value business on high-demand days, our solution prevents selling the property too early at lower rates, thus avoiding leaving money on the table.
Distribute Demand - FLYR creates relevant length of stay restrictions to distribute demand to low-performing shoulder nights. This, in turn, boosts demand on shoulder days and not just on high-demand nights, ensuring revenue is maximized over the period.
How do we do this?
Leveraging its granular and accurate forecasts at both inventory and rate levels, FLYR evaluates all possible open/close configurations to identify the one with the highest revenue. This process is repeated for multiple forecasting values, with each configuration weighed according to its probability of occurrence. The restrictiveness that maximizes revenue is thereafter selected.
Based on the expected booking curve, FLYR make informed decisions on whether to restrict rate plans immediately or wait until a later time. By implementing FLYR's restriction recommendations, you can boost your revenue management strategy and ensure that you capture the most profitable business through data-driven decisions.
What business will FLYR restrict?
FLYR provides fully automated inventory optimization for all business that can be restricted:
Yieldable business - all rate plans FLYR is allowed to restrict fully independently of other business segments (i.e. NLRA);
Parity business - all rate plans FLYR can restrict dynamically, but always need to be aligned with the base rate/BAR (i.e. LRA).
For more details on rate plan classification, review this article.
How do I define my strategy and how does FLYR use it?
Whenever you create rate plans, some have implicit restrictions based on the definition of the product that is made available. For example, a rate plan of STAY30+ offering discounted rates for guests staying for 30 or more nights in the property will have by default a LoS of Min 30. We refer to these restrictions as strategic and you can define these directly in FLYR.
Further, it is important to remember that FLYR’s inventory optimization uses tactical restrictions to maximise revenue. During the optimization, FLYR will always account for any configured strategic restrictions for the property and ensure that any recommended tactical restriction won’t modify this restriction in any way. Do you want to know more about how to manage restrictions in FLYR? Check out this article, for details on how to accept FLYR’s restrictions recommendations, review this article.
Example - you sometimes prefer to have early-bird promotions in the market to drive demand e.g. EARLY15 offering guests a 15% discount when booking 60 days or more before arrival. FLYR will dynamically determine for which stay date and inventory group and when in the booking window this promotion should be available. In high season FLYR might determine that this offer is not relevant and automatically close it. However, in case it determines that certain nights during the high season still don’t perform well, it might conclude to keep the promotion open for those nights.
Should you wish to receive a restrictions recommendation to lift the restriction if demand does not materialize, reduce or increase the LoS, the restrictions should be applied as a tactical restriction. Most often, to maximize revenues, one applies tactical restrictions while strategic restrictions applied when creating new rate plans or reviewing the existing rate plans.
Getting started
To take advantage of FLYR's Inventory Optimization, a few steps need to be completed:
You are all set now 🚀