Enhancing organizational structures for revenue management in small and medium-sized independent hotels: Evidence from China

Abstract

This study explores the challenges and complexities of organizational structure of revenue management (RM) in small and medium-sized (SMS) independent hotels in China. Its goal is to guide hotel practitioners in optimizing RM structures through the established framework for RM-related organizational design. Using a mixed methodology, the study combines longitudinal qualitative in-depth interviews with hotel employees and quantitative analysis to examine the relationship between organizational structures and hotel characteristics. The findings emphasize the importance of having a dedicated RM role and suggests that placing the revenue manager within the sales and marketing department may be more effective for SMS independent hotels. Additionally, the study highlights the potential of AI-powered RM software to enhance RM performance and develops a framework tailored to the needs of SMS hotels in China. It provides practical insights for hotel practitioners seeking to improve their RM practices and organizational structures, particularly in the context of adopting new technologies.