Understanding Applied Yield Management Practices in the Hotel Industry Using Simulation Techniques

Abstract:     
The paper discusses the use and relevance of yield management across industries. It highlights the benefits attached to the industries offering perishable commodities like the hospitality industry. Simulation is one of the techniques used to maximize returns through maximized utilization of the service. A simulation model was developed using Excel. To test the model in the actual industry situation, a mid-sized hotel in a B- class city in India was selected and actual data was used to work upon the developed model. The model helped decide the number of over-bookings the hotel may do to maximize the room use and therefore optimum resource utilization. The paper carries a snap shot of the developed model which the hotel is put into use.

Number of Pages in PDF File: 6

Keywords: yield management, hotel industry, simulation

JEL Classification: C15

working papers series