The Spread of Yield Management Practices (eBook)

Preface and introduction 5
Table of contents 11
Part I Some strategic aspects of a YMS implementation 18
Yield management in advanced systems of hotel management 19
1 Abstract 19
3 The evolution of the organisational structure of the hospitality business 21
4 The learning organisation: an objective to be reached 29
References 32
How to yield value: the Janus perspective 35
1 Introduction 35
2 Operational Y.M. issues 37
3 Strategic Y.M. issues 41
References 46
Human issues and the introduction of a yield 
 
51 
1 Introduction 51
2 Methodology 52
3 Literature review 53
4 The case study 56
5 Conclusions and recommendations 65
References 67
Yield Management and trust: the effect of variable pricing on consumer trust in a restaurant brand 71
1 Introduction 72
2 Reasons underlying variable pricing 73
3 Individual pricing and relationship marketing 75
4 Yield management 76
5 Hypothesis of the research 76
6 Conclusions and management implications 78
References 79
Controlling the yield management process in the hospitality business 81
1 Introduction 81
2 A general framework to control hotel YMS 82
3 General considerations about demand forecasting 83
4 General considerations about room inventory control 85
5 The control process: tracking 86
6 The control process: checking 89
7 The control process: signalling 91
8 The control process: controlling and updating 92
References 94
Part II Yield management: new applications 97
Revenue management in visitor attractions: a ease study of the EcoTecli Centre, Swaffham, Norfolk 99
1 Introduction 99
2 Background 100
3 The economics of visitor attractions 102
4 Marketing and ideal markets 103
5 Yield management 105
6 Data gathering 107
7 Results and discussion 108
8 Conclusions 111
References 114
Revenue management in the restaurant sector 117
1 Background information 117
2 Introduction 118
3 Literature review 119
4 Implications for the use of revenue management 120
5 Complexity of pricing in the restaurant sector 121
6 Menu analysis 122
7 Empirical study to be undertaken 123
References 125
Appendix 127
Questionnaire 128
Revenue management and food service businesses: the case of Italy 129
1 The food service sector in Italy 129
2 Revenue management and food service businesses 131
Recent events, challenges and options in revenue management 137
1 Introduction 137
2 Yi& RM community: towards growing consolidation
3 CRM vs. Y& RM?
4 The spreading fascination of RM 139
5 Conclusions 140
References 141
Part III Information instruments for a YMS in the hospitality industry 143
Microsoft Fidelio: Opus 2 overview 145
1 Organisation & scope of operations
2 Supplier's description of goods and services 147
3 RMS system versions 151
4 Group management 154
e-yield^^ technical brief 157
1 e-yieldTM 157
2 IDeaL/CARE 161
3 IDeaL/RESULTS 164
4 Are the results valid? 166
5 Hotel management 167
6 Decision integration 168

Revenue management in the restaurant sector (S.101)

Charlotte R. Rassing
Institut for Konjunktur Analyse
Aaberaa 29
1124 Copenhagen
Denmark

Contents: 1 Background information. U Purpose and composition of the paper. 2 Introduction. 3 Literature review. 4 Implications for the use of revenue management. 5 Complexity of pricing in the restaurant sector. 6 Menu analysis. 7 Empirical study to be undertaken. References. Appendix. Questionnaire.

1 Background information

The beginning of 2000 a new tourism research centre in Denmark was founded Centre without walls (Center uden mure} The centre is a consortium of Roskilde University, Copenhagen, Business School (institute for management, politics and philosophy) and the Research Centre of Bomholm. The research program that has to take place during the next tliree years is partly founded by the Danish Social Science Research Council.

As part of this program a Ph.D. study at the Research Centi'e of Bomliolm has been offered under the title Revenue Management in the Restaurant Sector. The Ph.D. student will be registered in Bournemouth University, UK, but the daily work will take place at the Research centre of Bornliolm, Denmark.

The objectives of the Ph.D. project is (1) to extend the theory of revenue management into the area of food and beverage operations, so as to product new processes in pricing, menu analysis and budgeting, and (2) to work with HORESTA (the Danish Hotels, Restaurant and Tourist Businesses Association) and selected restaurants in Bomholm to develop applications which have immediate practical returns to the sector.

1.1 Purpose and composition of the paper

The puipose of this paper is to introduce the reader to the Ph. D research that has to be undertaken at the Research centre of Bornholm within the next tluee years. The first part of the paper will take a closer look at what literature already exists about revenue management and what has to be done to apply the theory to the restaurant sector.

In the second part of the paper the empirical research to be undertaken will be briefly presented both the ideas and the expected output. It is important to point out that the Ph. D project is still at its very beginning. Therefore most of this paper will deal with already existing research and ideas to research in the future.

2 Introduction

Within the food and beverages industry revenue management is defined by Farell, K. and Whelan-lyan, F. (1998) as "the allocation of fixed capacity to various segmented markets in such a way as to meet customer requirements and to provide maximum returns on available capacity by the application of discriminatory pricing".

Revenue management includes all kinds of price discrimination that can be used to maximise the revenue when the capacity is fixed (HOREST A, 1999} The theory was developed, coined for and refined by the airline industry following airline deregulation in the 1970s. Today the technique is widely accepted and extensively used tliroughout the world, mainly among large hotels (Baum, T and Mudambi, R., 1998, p. 68) but also among large cruise liners, tour operators, and car rental companies.