An exploratory study of revenue management practice in Nigeria's small and medium-sized hotels

Abstract

This research investigates the adoption of RM theory in relation to its practice within small and medium-sized hotels (SMHs) in Nigeria based on the semi-structured interviews of 21 hotel managers. The concept of revenue management (RM) has developed since its inception in the early 1970s during the deregulation of the airline industry in the USA. It is now a common phenomenon in the service industry, particularly within the hospitality and tourism industry. This paper reveals that an adequate understanding and application of revenue management theory could maximise every aspect of operations in the hotel sector. This research involves a detailed investigation in the following key areas: the concept of revenue management, price determination, demand prediction and the effect of technology. The research methodology adopted a qualitative approach using semi-structured interviews. Data from the interviews were transcribed and thematic analysis was used to evaluate the findings.