The development of core concepts of yield management

Abstract

Yield management offers an Operations Manager a decision support framework for examining the revenue and conservation decision variables that integrate the characteristics of the Heritage Visitor Attraction (HVA) experience. The principles of yield management are drawn from the hotel and airline industries to demonstrate how the problem of fixed capacity is managed in other service sectors. This paper compares these principles against Heritage Visitor Attractions (HVAs), suggesting how they could adopt such concepts. As HVAs serve broader objectives, other than profit maximisation, financial pressures are encouraging the operations manager to devise imaginative and new ways of managing sites. Ten core principles of yield management are suggested that are appropriate to Heritage Visitor Attractions. These core principles are used to evaluate Historic Scotland's and the National Trust for Scotland's approach to revenue management.