Yield Management in 5-Star Hotels in Amman

Hameed A. Altaie, Najem A. Najem

Abstract


The study regards yield management as the most effective approach in the utilization of hotel capacity with a view to maximizing revenues. The study aims at determining the basic mechanisms of yield management, designing and developing a model contributing to the understanding and rationalizing of the mechanisms and practices related to yield management, and the possibility of using the proposed model in hotel evaluation.
The proposed model is a yield management matrix applied to a sample of selected 5-star hotels in Amman: a 3x3 matrix and four variables upon which the study was based: 2 zones; namely effectiveness zone and non-effectiveness zone. The four variables were: multiple prices, capacity and categories of rooms, various reservation systems and tourism seasonality and other seasons.
The first ten hotels were evaluated in accordance to the matrix, taking into consideration the four mentioned variables and the extent of concentration on them by the sample hotels.
A number of conclusions and recommendations were accordingly drawn.

Keywords


Yield Management, Multiple Prices, Reservation System, Categories of Rooms, Market Penetration Index, Average Rate Index, Occupancy Rate.

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