Abstract
The study aimed at investigating the mediation role of revenue management (RM) practices on the linkage between the internal and external hotel determinants and the financial performance of hotels in Kenya. The study used a quantitative approach adopted a cross-sectional survey research design. The study sampled 225 revenue managers from all-star-rated hotels in Kenya. Data were collected by use of a questionnaire. The findings revealed that, there was evidence of RM practice in hotels (M = 2.44, SD = 0.671) and that the application of RM has some impacts on the financial performance of hotels (M = 3.35, SD = 1.05). Further, the finding revealed a direct relationship between internal and external hotel determinants and financial performance of hotels (R = 0.457, Sig.
Highlights
The paper is organized under the following sub headings; background of the research, literature reviewed, methods used, findings and discussions, testing correlations, limitations, and conclusion
The findings can aid in the conceptualization and advancement of future studies on hotel revenue management
The findings further revealed that a large extent the performance indicators are generally used by hotels
Summary
The paper is organized under the following sub headings; background of the research, literature reviewed, methods used, findings and discussions, testing correlations, limitations, and conclusion. Revenue management (RM) is a management method to increase sales revenues by altering the pricing at which frozen products such as hotel rooms are made available for sale based on current and expected demand (Hospitality Professionals Association, 2013). Revenue Management integration has been demonstrated to positively impact a hotel’s financial performance and competitiveness, resulting in increased profitability for hotels and resorts (Ferguson & Smith, 2014). Hotels can analyze their guests’ preferences or booking habits, apply the optimal room prices, increase their business, and win against competition by implementing revenue management tactics (Patel, 2020). Its goal is to maximize revenue by using a flexible pricing policy to manage limited capacity, such as rooms
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