Yield Management in the Hotel Industry of Croatia

Abstract

This paper will explore the profit maximizing method of yield management in the Hotel industry in Croatia. Yield management is a method that enables firms to increase their profits through allocation of their capacities to various customers for the right prices. For Hotels that means selling the rooms at different rate levels. Main goal of this paper is to examine if, and to what extent is the Croatian Hotel industry using this method for profit maximization. After a short theoretical background on yield management we will present the results of empirical research on the implementation of yield management in Hotels in Croatia.