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Revenue Management
Essay specific features


Written by:
Stephen W
Date added:
March 26, 2015
Level:
University
Grade:
A
No of pages / words:
9 / 2502
Was viewed:
6954 times
Rating of current essay:
Essay content:
In addition, Kimes (2000:4) defines that ?§yield management is the application of information systems and pricing strategies to allocate the right capacity to the right customer at the right place at the right time.?? She suggest that Yield Management are applicable where the following conditions predominated:
?U Capacity is relatively fixed
?U Demand can be predicated separated in to distinct market segment
?U Inventory is perishable
?U Products is sold well in advance of consumption
?U Demand fluctuates substantially
?U Marginal sale costs are low and production costs are high
Moreover, Kimes (1998, 2000) suggests that the following factors are the necessary ingredient for a yield management system:
?U Market Segmentation
?U Historical Demand and Booking Patterns
?U Forecasting
?U Pricing Knowledge
?U Overbooking Policy
?U Information System
Furthermore, Jones and Kewin (2000:234, cited in Ingold et al...
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Due to the scale of this essay, the author will only discuss the hotel industry.
The above definitions have identified that historical performance, accurate forecasting, information system, technology and management knowledge are vital to success yield management. However, these definitions fail to address how to operate the yield management system effectively...
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