Yield Management and Price Optimisation in the Hotel Sector

Abstract

The aim of this paper is to deal with those trends which are affecting the whole operation of the hotel industry including dynamic pricing, yield management and price optimisation. These processes had great impact on the operation of the hotels in the last few years. The aims of the operation of the hotels in the last years were to find the ideal offer for all the guests with the help of the segmentation. This way hotels can increase the loyalty and brand loyalty of their customers and their willingness to return to the hotel again. The use of the yield management systems should have been extended to all the parts and departments of the hotel in order to direct the guests between the more and less profitable departments. This way the total realised profit for the whole stay of the guest can be increased. The presence and appearance of the online travel agencies have effects on the whole tourism and hospitality sector because the new actors are organising their offered journeys with a different philosophy. During their work they are using the big databases built by the online ranking systems which have big effect on the guests’ decisions as well.