Application of Revenue Management Practices in Star-Rated Hotels In Kenya

Abstract

The study aimed to find the extent of applying revenue management (RM) practices in star-rated hotels in Kenya. Specifically, the study sought to determine RM policies and implementation, application of RM techniques, and the use of RM systems. The study used a quantitative approach and adopted a cross-sectional survey research design. The study targeted 225 revenue managers from all-star-rated hotels in Kenya. The findings revealed that RM is a practice in star-rated hotels, even though not in all hotels. Hotels reported having RM policy and implementation taking place. There was an adoption of RM techniques. A dynamic RM team and the presence of social media integration with RM were identified. The findings revealed that by large, star-rated hotels interact with RM systems and sub-systems on the use of RM systems. Some hotels use either one or a combination of two systems. Furthermost, hotels were found to have automated their revenue collection. It was also revealed that they have adopted integrated RM soft-wares. The hotels were found to have meaningful RM data and information, RM pricing devices, and non-pricing devices. In comparison, information reveals a slightly above average presence of RM application in hotels in Kenya. The empirical evidence presented in this paper reveals that some hotels have not entrenched RM applications in terms of policies and implementation, RM tools and techniques, and their RM systems are lacking. The paper proposes that for full realization and maximization benefits associated with RM practices like predicting the growth of hotels, reducing operational costs, improving yields, and generating revenue, the industry should fully embrace RM applications.