The Relationship of Yield Management and Hotel Occupancy Levels with the Provision of Events during Off-Peak Seasons with a Case Study on Inverness Hotels
Citation
(2015) The Relationship of Yield Management and Hotel Occupancy Levels with the Provision of Events during Off-Peak
Seasons with a Case Study on Inverness Hotels, no. 129.
Abstract
The purpose of this study is to address the central aim and objectives and conclude
with a robust answer to the research question; The Relationship of Yield
Management and Hotel Occupancy Levels with the Provision of Events during Off-
Peak Seasons with a case study on Inverness Hotels. The aim of the research is to
explore the strategic relationship between yield management and accommodation
occupancy levels by holding events during off-peak seasons. The objectives are the
following:
• Determine what yield management is and the parameters used by hotels to
implement this on a regular basis.
• Examine the advantages and disadvantages of using yield management in
hotels.
• Explore the relationship between the hotel business cycle and event cycle
patterns.
• Investigate whether hotels should use events to maximise profits.
Firstly, existing literatures on yield management (YM) were analysed and discussed
to obtain in-depth understanding of the topic area being researched. However, due
to the lack of literature on YM in relation to events, the researcher discussed
dynamic pricing which is currently being used by professional sports and the box
office. In the literature review emerging themes were identified, these will be further
discussed and analysed together with themes arising post data collection.
Next, a mixed-method approach of quantitative and qualitative was used as this
would provide data which could be collected in numerical form as well as data
involving people's own experiences. The two methods used to collect data were:
Survey questionnaires and semi-structured interviews. The survey questionnaires
were sent to 22 hotels who are members of the Inverness Hotel Association. These surveys were to be completed by either General Managers or Revenue Managers
as they would have fruitful knowledge on the research topic. Also, five hotel General
Managers were interviewed in Inverness at their workplace.
Afterwards the quantitative and qualitative data were gathered, analysed and coded
accordingly into themes which emerged previously within the literature review as
well as new findings from the survey questionnaires and interviews. The findings
showed that events can be used to maximise profits in hotels; however, they cannot
be used to increase occupancy levels due to the geographical location of the hotels,
Inverness as well as the size of the city itself. In spite of this, local events organised
within the local area increases the potential of increase in accommodation occupancy levels.