TY - JOUR
T1 - One for all and all for one, a comparison of everyday low pricing and yield management strategies in the hotel industry
AU - McMahon-Beattie, U
AU - Palmer, A
N1 - Reference text: 1. Kimes, S. (1997) "Yield Management: an overview". In Yield Management, Strategies for the Service Industries. (Eds) Yeoman, I and Ingold, A., Cassell:London., pp. 3-11.
2. Kimes, S. (1989) "The Basics of Yield Management", Cornell Hotel and Restaurant Administration Quarterly, Vol.30, No.3, pp.14-19.
3. Donaghy, K., McMahon, U. and McDowell, D. (1995) "Yield Management: An Overview", International Journal of Hospitality Management, Vol.14, No.2, pp. 139-150.
4. Anderson, A. (1996), Yield Management in Small to Medium Sized Enterprises in the Tourism Industry, European Commission, DGXXIII, Tourism Unit.
5. Sieburgh, J.A. (1988) "Yield Management at Work in the Royal Sonesta", Lodging Hospitality, October, pp.235-237.
6. Lieberman, W.H. (1993) "Debunking the Myths of Yield Management", Cornell Hotel and Restaurant Administration Quarterly, Vol.34, No.1, pp. 34-44.
7. Cross, R. (1997), Revenue Management, New York:Broadway Books.
8. Donaghy, K. and McMahon, U. (1995) "Managing Yield: A Marketing Perspective", Journal of Vacation Marketing, Vol.2, No.1, pp. 655-62.
9. Donaghy, K., McMahon-Beattie, U., Yeoman, I. And Ingold, A. (1998) "The Realism of Yield Management", Progress in Tourism and Hospitality Research, No.4,pp. 187-195.
PY - 2000
Y1 - 2000
N2 - As a consequence of the deregulation of the US airline industry in the 1970s, Yield Management was developed as a management tool for enhancing profit and maintaining competitive advantage. To date, it has gained widespread adoption in a number of service industries where it assists the manager to profitably match variable demand with fixed capacity. However, while yield management practices have been linked with increasing levels of profitability, many service industries have profitably pursued a seemingly opposite strategy of one basic, no-frills product offer for all. This paper examines the factors that encourage some service organisations to utilise yield management techniques whilst others resort to offering low cost, no frills pricing approaches. Exploratory research of a sample of UK hotels demonstrates that whilst uniform pricing is indeed likely to be associated with a low price position, no evidence was found that yield management approaches to pricing are likely to be associated with simple service offers or organisations that only target a small number of market segments.
AB - As a consequence of the deregulation of the US airline industry in the 1970s, Yield Management was developed as a management tool for enhancing profit and maintaining competitive advantage. To date, it has gained widespread adoption in a number of service industries where it assists the manager to profitably match variable demand with fixed capacity. However, while yield management practices have been linked with increasing levels of profitability, many service industries have profitably pursued a seemingly opposite strategy of one basic, no-frills product offer for all. This paper examines the factors that encourage some service organisations to utilise yield management techniques whilst others resort to offering low cost, no frills pricing approaches. Exploratory research of a sample of UK hotels demonstrates that whilst uniform pricing is indeed likely to be associated with a low price position, no evidence was found that yield management approaches to pricing are likely to be associated with simple service offers or organisations that only target a small number of market segments.
M3 - Article
VL - 8
SP - 249
EP - 258
JO - Journal of Targeting, Measurement and Analysis for Marketing
JF - Journal of Targeting, Measurement and Analysis for Marketing
SN - 0967-3237
IS - 3
ER -