The realism of yield management

✍ Scribed by Kevin Donaghy; U. McMahon-Beattie; I. Yeoman; A. Ingold

• Publisher: John Wiley and Sons
• Year: 1998
• Weight: 579 KB
• Volume: 4
• Category: Article
• ISSN: 1077-3509
• DOI: 10.1002/(sici)1099-1603(199809)4:3<187::aid-pth156>3.0.co;2-b

✦ Synopsis

The realism of yield management is presented in the terms of historical development, preconditions, ingredients, decision-making variables and boundaries. From this realism the yield segmentation process (YSP) emerges. The YSP is a `hands on style' of capacity management that suits the organisational style and culture of the smaller and medium sized hotels. The YSP is described as a process rather than a ®xed method, a frame of reference that is described as logical incrementalism. The YSP does not replace the practises of hotel management, but strengthens existing systems and procedures. The YSP process is broader than prescribed methods but is ¯exible as a decision-making support tool for modern hotel management. The YSP provides a sequential and comprehensive framework to ensure that yield management adds value to managing capacity. This, however, presents a challenge to software manufactures who traditionally have used rate structures and potential incremental revenue as a basis for decision-making within yield management.