Assessing the Benefits of Yield Management in the Hospitality Industry in the Kumasi Metropolis of Ghana

Abstract

Ghana's hotel industry has a great deal of potential for future development. However, revenue loss due to lost opportunity arising from unused rooms or no shows is a challenge facing the industry. Maximizing revenue is important in the industry because of high costs of operation. Yield Management (YM) offers one of the potential revenue maximization strategies in the hotel business operations. This study aims at evaluating the effect of yield management practices on business operations in the hotel industry in the Kumasi Metropolis of Ghana. The study adopted a combination of qualitative and quantitative approach. The study relied on primary data which was collected through field survey using semi-structured interview and questionnaires instruments. Descriptive statistics was used to analyse qualitative data whilst the qualitative data was analysed through deduction and inferences. The study revealed that that the implementation of yield management has positive impact in hotel business operations in the Kumasi Metropolis in terms of profitability competitive advantage operational efficiency productivity and cost saving. it is recommended that the hotel industry, particularly in the Kumasi Metropolis, should invest in information technology education as well as staff training to improve their skill capacity since effective practices YM depends on effective information system.