Why Yield Management Is Important To Hotels Essay

Why concede focus Is Important To Hotels - Essay ExampleThe paper foc put ons on the potential value of revenue instruction, alike cognize as yield management to hotels. In the context of the hotel industry, yield management is a term apply for describing a high range of techniques through which occupancy is appropriately managed so that the profits of a hotel atomic number 18 increased. Therefore, yield management is quite beta to hotels. However, in practice it has been revealed that yield management provoke also have a series of implications for the organization, its employees, and customers this issue is discussed below using literature published in this field. Yield management in the hotel industry has a series of advantages. Baker, Huyton & Bradley note that yield management if it is used in the particular industry, it can lead to the increase of a rooms revenue and of its space. It is explained though that yield management can play the above role only if a staff is appropriately trained for offering customer service of high quality. In other words, low employee efficiency can eliminate the value of yield management, either in the short or the long term. In both case, the value of yield management, as a key concept in the hotel industry, cannot be doubted. Indeed, yield management can highly benefit the hotel industry. The potential for accurate forecasting is considered as one of the most important advantages of yield management systems. However, the above benefit can be available only in hotels that use advanced IT systems that can monitor every organizational activity and provide accurate information in regard to the organizations strengths and weaknesses. Yield management can also help hotel managers to make potent plans in regard to the potential expansion of the organization. For example, in order for a hotel to enter a hostile market, it would be necessary for the hotels managers to have an accurate view of the hotels profitability so that they are able to check whether the risk of potential losses could be undertaken or not.