Revenue management systems and hotels' operational performance.

What is it about?

The aim of this article was to analyse whether hotels that employ a Revenue Management System (RMS) outperform non-RMS-users in a context of decreasing demand. In a context of strong competition in prices and surplus capacity, the findings suggest that RMSs have been more effective in improving occupancy than in achieving higher rates. Also, the use of RMSs did not have a significant impact on hotel labour productivity.

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Why is it important?

The main implication of this article is that the potential of RMSs as revenue enhancer might be influenced by unstable market and economic conditions. However, the absence of significant effects on RevPAR performance might be also the result of firms’ adopting inadequate RM strategies. Further research could investigate whether the findings are context-specific or whether firms are failing to implement effective RMSs for other reasons.