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Revenue Management


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There are some common characteristics of the service products which can be described as intangibility, inseparability, variability, perishablity and the inability ( Kandampully,Z et al:2000;Palmer, A:1994; Rust et al:1996)). In addition, Zeithaml& Bitner(1996) indicates that fluctuating demand should be considered in hospitality industry. Additionally, Lee- Ross and Johns (1997) claims that yield management could be used to assist the service organization to maximize revenue when the demand is fluctuating and product is perishable. Thus, due to the perishablity of the service products fluctuating demand, the hoteliers could apply yield management system in order to maximize the revenue.

Kimes (2000) claims that Yield (or revenue) management is a method for managing capacity profitably and the term ¡¥yield¡¦ refers to yield (or revenue) per available time-based inventory unit. It refers on the revenue per available room nights in hotel and revenue per available seat hours in......

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Approximate Word Count: 2533
Approximate Pages: 10 (260 words per double-spaced page)

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