Yield Management in Hotel Industry - Essay Example

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Yield Management in Hotel Industry

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. 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. Indeed, yield management can highly benefit the hotel industry. The potential for accurate forecasting is considered as one of the most important advantages of yield management systems (Hsu & Powers 2001, p.261). However, the above benefit can be available only in hotels that use advanced IT systems that can monitor every organizational activity and provide accurate information in regard to the organization’s strengths and weaknesses.Yield management can also help hotel managers to make effective plans in regard to the potential expansion of the organization. For example, in order for a hotel to enter a foreign market, it would be necessary for the hotel’s managers to have an accurate view of the hotel’s profitability so that they are able to check whether the risk of potential losses could be undertaken or not. ...
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Current paper focuses on the potential value of ‘revenue management, also known as yield management’ 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…
Author : chaya09

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