Assessing the Benefits of Yield Management in the Hospitality Industry in the Kumasi Metropolis of Ghana

Authors

  • Owusu Boahen Kwame Nkrumah University of Science & Technology, Ghana
  • Emmanuel Kweku Quansah Kwame Nkrumah University of Science & Technology, Ghana
  • Owusu Kwame Sarpong Kumasi Polytechnic, Ghana

DOI:

https://doi.org/10.18533/ijbsr.v3i9.277

Keywords:

Yield Management, Hospitality Industry, Revenue maximization, Kumasi Metropolis.

Abstract

Ghana's hotel industry has a great deal of potential for future development. However, revenue loss due to lost opportunity arising from unused rooms or no shows is a challenge facing the industry. Maximizing revenue is important in the industry because of high costs of operation. Yield Management (YM) offers one of the potential revenue maximization strategies in the hotel business operations. This study aims at evaluating the effect of yield management practices on business operations in the hotel industry in the Kumasi Metropolis of Ghana. The study adopted a combination of qualitative and quantitative approach. The study relied on primary data which was collected through field survey using semi-structured interview and questionnaires instruments. Descriptive statistics was used to analyse qualitative data whilst the qualitative data was analysed through deduction and inferences. The study revealed that that the implementation of yield management has positive impact in hotel business operations in the Kumasi Metropolis in terms of profitability competitive advantage operational efficiency productivity and cost saving. it is recommended that the hotel industry, particularly in the Kumasi Metropolis,  should invest in  information technology education as well as staff training to improve their skill capacity since effective practices YM depends on effective information system.   

 

Author Biographies

  • Owusu Boahen, Kwame Nkrumah University of Science & Technology, Ghana

    Student,

    School of Business, Department of Information Systems and Decision Sciences

  • Emmanuel Kweku Quansah, Kwame Nkrumah University of Science & Technology, Ghana

    Lecturer,

    School of Business, Department of Information Systems and Decision Sciences

     

  • Owusu Kwame Sarpong, Kumasi Polytechnic, Ghana

    Lecturer,

    Department of Purchasing and Supply

References

Barth JE, 2002. Yield management: opportunities for private club managers. International

Journal of Contemporary Hospitality Management, 14:136–141

Berman B, 2005. Applying yield Management pricing to your service business. Business Horizons, 48(2): 169-179.

Blake K, Buckhiester B, 2005. Top five “must dos” to raise room profitability. Available at: www.hotelnewsresource.com/article16996.html.( Accessed 02 June 2012).

Bitran G, Caldentey R, 2003. An Overview of Pricing Models for Revenue Management.

Manufacturing and Service Operations Management, 5 (3): 203-229.

Brotherton B, Mooney S, 1992. Yield Management: progress and prospects. International

Journal of Hospitality Management 11(1): 23-32.

Chiang WC, Chen JCH, Xu X, 2007. An overview of research on revenue management: Current

issues and future research. International Journal of Revenue Management, 1:97-128.

Cross RG, 1997. Launching the Revenue Rocket: How Revenue Management Can Work for

Your Business. The Cornell Hotel and Restaurant Administration Quarterly, 38(2): 32-43.

Donaghy K, McMahon U, McDowell D, 1995. Yield Management: an overview. International

Journal of Hospitality Management 14(2):139-150.

Eric B Orkin, 1998. Wishful Thinking and Rocket Science: The Essential Matter of Calculating Unconstrained Demand for Revenue Management, 39(4):15-19

Enz CA, 2003. Hotel pricing in a networked world. Cornell Hotel and Restaurant Administration Quarterly, 44(1):4–5.

Esse T, 2003. Securing the Value of Customer Value Management, Journal of Revenue and Pricing Management

Fitzsimmons JA, Fitzsimmons MJ, 2011. Service Management, Operations, Strategy, and

Information Technology. McGraw-Hill.

Ghana Tourist Board 2005. Tourism Statistical Fact Sheet on Ghana, Accra, Ghana: Ghana Tourism Board, Research Department.

Hanks R, Cross R, Noland R, 1992. Discounting in the Hotel Industry: A new approach.

Cornell Hotel and Restaurant Administration Quarterly, 33(1):15–23.

Jauncey S, Mitchell I, Slamet P, 1995. The Meaning and Management of Yield in hotels.

International Journal of Contemporary Hospitality Management, 7(4):23-26.

Jones P, Hamilton D, 1992. Yield management: Putting People in the Big Picture. Cornell

Hotel and Restaurant Administration Quarterly, 33:89-95.

Kimes S, 2003. Revenue Management: A Retrospective. Cornell Hotel and Restauration Quaterly, oct-dec, 131-138.

Kimes S, 2002. Perceived fairness of Yield Management, Cornell hotel and restaurant Administration Quarterly, 21-30.

Kimes S, 2002. A Retrospective Commentary on Discounting in the Hotel Industry: A New

Approach”. Cornell Hotel and Restaurant Administration Quarterly, August, 92-93.

Kimes S, 2000. A strategic approach to yield management. In A. Ingold, U. McMahon- Lee-

Ross D, Johns N, 1997. Yield Management in Hospitality SMEs. International Journal of Contemporary Hospitality Management, 9 (2): 66–69.

Kimes S, 1989. Yield Management: A tool for capacity-constrained service firms. Journal of Operations Management, 8: 348-363.

McGill JI, Van Ryzin GJ, 1999. Revenue management: Research overview and prospects. Transportation Science, 33(2):233. Retrieved from

http://ezproxy.library.unlv.edu/login?url=http://search.ebscohost.com/login.aspx?dire ct=true&db=aph&AN=4292821&site=ehost-live

McMahon-Beattie U, Yeoman I, 2000. Yield Management: Strategies for the Service Industries, 2nd rd, London and New York: Continuum, 3-14.

McMahon-Beattie U, Donaghy K, Yeoman I, 1999. Yield Management in Hotels. In

Constantinos S, Wood RC, 1999. Accommodation Management Perspectives from the

International Hotel Industry. UK: International Thomson Business Press.

Noone B, Griffin P, 1997. Enhancing Yield Management with Customer Profitability Analysis. International Journal of Contemporary Management, 9(2):75-79.

Neuman WL, 2005. Social Research Methods (6th edn). London: Sage

O’Neill J, Mattila A, 2006. Strategic hotel development and positioning. Cornell Hotel and

Restaurant Administration Quarterly, 47(2):146–154.

Downloads

Published

2013-10-02

Issue

Vol. 3 No. 9 (2013): September

Section

Article

License

Authors who publish with this journal agree to the following terms:

  • Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  • Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  • Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).