Implementing yield management: lessons from the hotel sector

Abstract

Traditionally the hospitality industry has been slow to adopt new systems and technologies. This can be witnessed particularly in the hotel industry’s utilization of yield management (YM). Based on the experiences of hotel managers, explores the problems encountered during the introduction of YM into the accommodation function and highlights possible approaches for managing the change from traditional management techniques to a YM system. Found that this transition was best achieved by developing a conceptual and/or working knowledge of YM at three levels in the company: head office, unit general managers, and staff. A team approach within the unit was considered essential involving, ideally, the yield specialists, the functional specialists and the general manager acting as a co‐ordinator. Change was more easily effected if a well‐planned, unit‐specific, and timely training programme emphasized the similarities with and not the differences between traditional management techniques and a YM approach. Considerable challenges remain for software developers to provide industry‐specific and user‐friendly packages.