The Realism of Yield Management

K Donaghy, U McMahon-Beattie, I Yeoman, A Ingold

Research output: Contribution to journalArticle

Abstract

The realism of yield management ispresented in the terms of historicaldevelopment, preconditions, ingredients,decision-making variables and boundaries.From this realism the yield segmentationprocess (YSP) emerges. The YSP is a `handson style' of capacity management that suitsthe organisational style and culture of thesmaller and medium sized hotels. The YSP isdescribed as a process rather than a ®xedmethod, a frame of reference that is describedas logical incrementalism. The YSP does notreplace the practises of hotel management,but strengthens existing systems andprocedures. The YSP process is broader thanprescribed methods but is ¯exible as adecision-making support tool for modernhotel management. The YSP provides asequential and comprehensive framework toensure that yield management adds value tomanaging capacity. This, however, presents achallenge to software manufactures whotraditionally have used rate structures andpotential incremental revenue as a basis fordecision-making within yield management.
LanguageEnglish
Pages187-195
JournalProgress in Tourism and Hospitality Research,
Volume4
Issue number3
DOIs
Publication statusPublished - 1998

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Realism
Yield management
Capacity management
Frame of reference
Decision making
Logic
Hotels
Incrementalism
Hotel management
Software
Incremental
Revenue

Cite this

Donaghy, K ; McMahon-Beattie, U ; Yeoman, I ; Ingold, A. / The Realism of Yield Management. In: Progress in Tourism and Hospitality Research,. 1998 ; Vol. 4, No. 3. pp. 187-195.
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abstract = "The realism of yield management ispresented in the terms of historicaldevelopment, preconditions, ingredients,decision-making variables and boundaries.From this realism the yield segmentationprocess (YSP) emerges. The YSP is a `handson style' of capacity management that suitsthe organisational style and culture of thesmaller and medium sized hotels. The YSP isdescribed as a process rather than a {\circledR}xedmethod, a frame of reference that is describedas logical incrementalism. The YSP does notreplace the practises of hotel management,but strengthens existing systems andprocedures. The YSP process is broader thanprescribed methods but is ¯exible as adecision-making support tool for modernhotel management. The YSP provides asequential and comprehensive framework toensure that yield management adds value tomanaging capacity. This, however, presents achallenge to software manufactures whotraditionally have used rate structures andpotential incremental revenue as a basis fordecision-making within yield management.",
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note = "Reference text: Anderson, A. (1996), Yield Management in Small to Medium Sized Enterprises in the Tourism Industry, European Commission DGXXIII, Tourism Unit. Belobaba, P. P. (1989), Application of a probabilistic decision model to airline seat inventory control. Operations Research, 37, 2, 183±197. Berkus, D. (1988), TheYM revolution{\DH}an ideal use of AI, The Bottomline, June/July, 13±15. Cross, R. (1997), Revenue Management, New York: Broadway Books. Donaghy, K., McMahon, U., and McDowell, D. (1995), Yield management: an overview, Interna- tional Journal of Hospitality Management, 14, 2, 139± 150. Donaghy, K., McMahon-Beattie, U., and McDowell, D. (1997), Implementing Yield Management: Lessons from the Hotel Sector, International Journal of Contemporary Hospitality Management, 9, 2, 50±54. Hansen, C. N., and Eringa, K. (1997), Critical success factors in YM: a development and analysis, Paper presented at 2nd International Yield Management Conference, University of Bath, England, 9±11th September. Huyton, J., Evans, P., and Ingold, A. (1997), The legal and moral issue surrounding the practice of YM, Viewpoint, International Journal of Contempor- ary Hospitality Management, 9, 2&3 84±87. # 1998 John Wiley & Sons, Ltd. Prog. Tourism Hospit. Res. 4, 187±195 (1998) 194 K. Donaghy et al. Jones and Kewin (1997), Yield Management in UK Hotels: Principles and Practice. Proceedings 2nd Annual International Yield Management Conference. University of Bath, September 1997. Kimes, S. (1989), The basics of yield management, Cornell Hotel and Restaurant Administration Quar- terly, 30, 3, 14±19. Kimes, S. (1997), Yield management: an overview, in Yeoman, I., and Ingold, A. (Editors), Yield Management, Strategies for the Service Industries, 3±11. London: Cassell. Lee-Ross, D., and Johns, N. (1997), Yield manage- ment in hospitality SMEs, International Journal of Contemporary Hospitality Management, 9, 2&3, 66± 69. Lieberman, W. H. (1993), Debunking the myths of yield management, Cornell Hotel and Restuarant Administration Quarterly, 34, 1, 34±44. McCool, A. (1987) Some considerations in develop- ing expert systems for the hospitality industry, International Journal of Hospitality Management, 6, 191±198. Orkin, E. B. (1988a), Boosting our bottomline with yield management, Cornell Hotel and Restaurant Administration Quarterly, 28, 4, 52±56. Orkin, E. B. (1988b), Yield management makes forecasting fact not {\circledR}ction, Hotel and Motel Management, August 15, 112±118. Russell, K. A., and Johns, N. (1997), Computerised yield management systems: lessons from the airline industry, in Yeoman, I. and Ingold, A. (Editors), Yield Management: Strategies for the Service Industries. London: Cassell. Sieburgh, J. A. (1988), Yield management at work in the Royal Sonesta, Lodging Hospitality, October, 235±237. Yeoman, I., and Ingold, A. (1997), Decision-making, in Yeoman, I. and Ingold, A. (Editors), Yield Management: Strategies for the Service Industries, 101±119. London: Cassell. #",
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The Realism of Yield Management. / Donaghy, K; McMahon-Beattie, U; Yeoman, I; Ingold, A.

In: Progress in Tourism and Hospitality Research, Vol. 4, No. 3, 1998, p. 187-195.

Research output: Contribution to journalArticle

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