 Specifics of tourism system as a basis for yield management implementationIvo Županović ()
Tourism and Hospitality Industry from University of Rijeka, Faculty of Tourism and Hospitality Management Abstract: Purpose – Purpose of the paper creation is the fact that without unit measurement of profit cannot be defined efficiency of any part of the tourism sector. Implementation of yield management allows the aforementioned premise, but primarily from the marketing aspect, where the financial aspect only occurs as a consequence. Also, the purpose of this paper is to prove the connection between operating part of yield management, more precisely price differentiation and strategic level (four predominant strategies). Design/methodology/approach – Yield management is generally created in response to increased competition between companies, primarily in the service sector. Yield management is often defined as revenue management or yield in financial sense, which is not completely correct due to the fact that foundation for the specified subsystem management in marketing concept, and afterwards financial aspect. In fact, primarily the emphasis is on price-differentiation, therefore as management of marketing tool, as well as effective combination with other instruments of marketing mix. Findings – Yield management enables uniform capacity utilization even during changing of tourist consumers demand and thereby maximize total yield. The basic idea of the yield management involvement, therefore, is the development of know-how system, that system of knowledge, then better process monitoring, and yet ultimately optimization of unit revenue and unit profit. Because of this, mainly because of the heterogeneity of tourism, as well as the elasticity tourism demand, and innovation that are represented in the management process is completely necessary to establish the precise measurement of unity of all relevant elements in the tourist system, which requires new tools and techniques. In this sense, it is necessary involvement of yield management, methods of measurement unit income, and indirectly unit costs. Especially is important that yield management can be applied to all tourist sub-systems such as hotel sector, F&B sector and as well distribution channels, more precisely to tour operators and tourist agencies. Originality/contribution – Integrated research proves that without adequate postulates (that yield is primarily marketing and afterwards financial tool), close connection between crucial tools (prices differentation) and strategies (Calendar, Clock, Capacity, Cost) yield management cannot be long-term sustainable system. Keywords: yield management; tourism system; price differentiation; marketing mix; capacity utilization; unit profit (search for similar items in EconPapers) Published in 22nd Biennial International Congress Tourism & Hospitality Industry 2014, May 2014, pages 689-702 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tho:iscthi:confpap10 Access Statistics for this paper More papers in Tourism and Hospitality Industry from University of Rijeka, Faculty of Tourism and Hospitality Management |
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