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Implementation of yield management practices in service organisations: empirical findings from a major hotel group

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  • Fevzi Okumus

Abstract

This article presents findings on the development and implementation of a centralised yield management project by an international hotel group in its over 160 hotel units. Data were collected over two years from the participant hotel group's three management levels through semi-structured interviews, observations and document analysis. The research findings reveal that developing and implementing a centralised yield management project is contextually a very complex and challenging task. Major problems and difficulties appear to have originated from the participant company's organisational structure and culture. In addition, a high labour turnover, poor HRM practices, ongoing developments and changes across the company seem to have had an impact on the implementation of yield practices. The existing literature on yield management seems to view yield implementation as a tactical activity and therefore fails to explain the strategic implications of deploying yield practices in service organisations. The overall recommendation of this article are that scholars and practitioners working in this area should view yield implementation more from the perspectives of strategic management and change management fields.

Suggested Citation

  • Fevzi Okumus, 2004. "Implementation of yield management practices in service organisations: empirical findings from a major hotel group," The Service Industries Journal, Taylor & Francis Journals, vol. 24(6), pages 65-89, November.
  • Handle: RePEc:taf:servic:v:24:y:2004:i:6:p:65-89
    DOI: 10.1080/0264206042000299185
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    Cited by:

    1. Onofre Martorell-Cunill & Anna M. Gil-Lafuente & Antoni Socias Salvà & Carles Mulet Forteza, 2014. "The growth strategies in the hospitality industry from the perspective of the forgotten effects," Computational and Mathematical Organization Theory, Springer, vol. 20(2), pages 195-210, June.
    2. Melnyk, Iryna & Barna, Marta, 2022. "Pricing strategies in the revenue management system of hotel enterprises," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 15(3), September.
    3. Moraru Remus Christian, 2017. "Social value of online information in the hotel industry," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 11(1), pages 810-817, July.
    4. Noel Scott & Noreen Breakey, 2007. "Yield Applied to Destination Management: An Inefficient Analogy?," Tourism Economics, , vol. 13(3), pages 441-452, September.
    5. Tevfik Demirciftci & Gurel Cetin & Anil Bilgihan, 2017. "Coping with RM challenges in hospitality education," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(5), pages 499-512, October.
    6. Onofre Martorell Cunill & Carles Mulet Forteza, 2010. "The Franchise Contract in Hotel Chains: A Study of Hotel Chain Growth and Market Concentrations," Tourism Economics, , vol. 16(3), pages 493-515, September.
    7. Onofre Martorell Cunill & Carles Mulet Forteza & Micaela Rosselló Miralles, 2008. "Valuing Growth Strategy Management by Hotel Chains Based on the Real Options Approach," Tourism Economics, , vol. 14(3), pages 511-526, September.
    8. Melnyk Iryna & Barna Marta, 2022. "Pricing Strategies in the Revenue Management System of Hotel Enterprises," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 15(3), pages 384-397, September.
    9. Veronika I. Kabalina & Kira V. Reshetnikova & Marina D. Predvoditeleva, 2014. "Tourism Companies: Values And Norm. Profiles: The Case Of A Russian Tour Operator," HSE Working papers WP BRP 27/MAN/2014, National Research University Higher School of Economics.

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