The Effectiveness of Yield Management Systems Free Essay Example, 1000 words

It has been proved that yield management cannot perform well under specific conditions, as for example in the following cases: a) when a hotel serves a single market segment or b) when a hotel has less than 50 rooms, i.e. in a hotel that has low occupancy rates (Abdel-Kader 2011, p. 505). This means that yield management systems are primarily designed for supporting the operations of hotels that are already well established in the market. At the next level, Weber Chon (2002) note that today yield management has been highly developed compared to the past. The systems of yield management currently used in hotels worldwide can be so complex that they can be only managed by highly skilled staff (Weber Chon 2002, p. 198). For example, there are hotels where yield management is developed by individuals working exclusively on this subject (Weber Chon 2002, p. 198). This trend leads to the following assumption: in order to be able to respond to the needs of yield management, hotels oper ating in the modern market need to establish relevant training programs, ensuring that all employees involved in the particular activity are appropriately skilled. Bowie Buttle (2012) also highlight the high dependency of yield management on IT systems. We will write a custom essay sample on The Effectiveness of Yield Management Systems or any topic specifically for you Only $17.96 $11.86/page Also, even if a yield management system has successfully operated for a particular period of time, its effectiveness in the long term cannot be secured.