Monday, December 17, 2012

Revenue Management

There are some common characteristics of the service products which house 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 contend should be considered in hospitality industry. Additionally, Lee- Ross and Johns (1997) claims that proceeds management could be utilize 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 check yield management system in methodicalness to maximize the revenue. Kimes (2000) claims that outcome (or revenue) management is a method for managing capacity fruitfully and the term ¡¥yield¡¦ refers to yield (or revenue) per acquirable time-based inventory unit. It refers on the revenue per available room nights in hotel and revenue per available seat hours in the restaurant. In addition, Kimes (2000:4) defines that ¡§yield management is the diligence of information systems and pricing strategies to allocate the responsibility capacity to the proper(ip) customer at the right place at the right time.
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¡¨ She suggest that Yield Management are applicable where the pursuance conditions predominated: ?ÜCapacity is relatively fixed ?ÜDemand can be predicated uninvolved in to distinct market segment ?ÜInventory is perishable ?ÜProducts is sold salutary in advance of consumption ?ÜDemand fluctuates substantially ?ÜMarginal sale cost are low and production costs are amply Moreover, Kimes (1998, 2000) suggests that the following factors are the necessary ingredient for a yield management system: ?ÜMarket Segmentation ?ÜHistorical Demand and reserve Patterns ?ÜForecasting ?ÜPricing Knowledge ?ÜOverbooking Policy ?ÜInformation System Furthermore, Jones and Kewin (2000:234, cited in Ingold et al.) extended the definition of ¡§Yield Management to... If you want to get a full essay, order it on our website: Orderessay

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