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Tourism Explain why yield management is important to hotels and critically discuss the advantages and disadvantages for the organization, its employees and customer. 1. Introduction Profitability can be characterized as one of the key criteria for evaluating a firm’s performance.


Current paper focuses on the potential value of ‘revenue management, also known as yield management’ (Dopson & Hayes 2008, p.308) to hotels. In the context of hotel industry, yield management is a term used for describing a high range of techniques through which occupancy is appropriately managed so that the profits of a hotel are increased (Dopson & Hayes 2008, p.308). Therefore, yield management is quite important to hotels. However, in practice it has been revealed that yield management can also have a series of implications for the organization, its employees and customers; this issue is discussed below using literature published in this field. 2. Yield management – importance and implications for hotels Yield management in the hotel industry has a series of advantages. Baker, Huyton & Bradley (2001) note that yield management, if it is used in the particular industry, it can lead to ‘the increase of a room’s revenue and of its space’ (Baker, Huyton & Bradley 2001, p.291). It is explained though that yield management can play the above role only if staff is appropriately trained for offering customer service of high quality (Baker, Huyton & Bradley 2001, p.291). In other words, low employee efficiency can eliminate the value of yield management, either in the short or the long term. In any case, the value of yield management, as a key concept in the hotel industry, cannot be doubted. ...
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