The impact of yield management on the role of the hotel general Manager

Abstract

Currently, there is a growing body of evidence that demonstrates an increase in interest in the use and application of yield management (YM) within the tourism industry. Specifically within the UK hotel sector, the extensive application of YM can be found in organisations that benefit from economies of scale and resources, namely the corporate sector. It can be expected that as the interest in and application of YM continues to increase some of the traditional components of the role of the hotel general manager may change. Indeed, the shift in focus from traditional capacity management techniques to those of revenue optimisation introduces some new managerial approaches, which may be enhanced with the traditional ‘hospitality’ nature of the industry. This paper reports the findings of a study that focused on the accommodation management techniques of the general managers in 300 UK corporate hotels. The research examined the impact that YM has on the role of the general manager based on Mintzberg’s classification of roles and Arnaldo’s sector-specific study. It presents evidence that the application of yield techniques are found to influence the time and importance that managers attach to key managerial roles. In addition, the study highlights that five key job components are ranked differently by hotel managers who practice extensive yield techniques, as opposed to those who operate minimal techniques. © 1998 John Wiley & Sons, Ltd.