The Realism of Yield Management

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

Research output: Contribution to journalArticlepeer-review

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.
Original languageEnglish
Pages (from-to)187-195
JournalProgress in Tourism and Hospitality Research,
Volume4
Issue number3
DOIs
Publication statusPublished - 1998

Bibliographical 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 revolutionÐan 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 ®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.
#

Fingerprint

Dive into the research topics of 'The Realism of Yield Management'. Together they form a unique fingerprint.

Cite this