| Author: | Nyaga, Olive Nelly Muthoni |
| Title: | Revenue management strategy implementation : role of critical factors on revenue management strategy effectiveness |
| Advisors: | Mun, Sung Gyun (SHTM) Basak, Denizci Guillet (SHTM) |
| Degree: | Ph.D. |
| Year: | 2023 |
| Subject: | Hotel management Revenue management Hong Kong Polytechnic University -- Dissertations |
| Department: | School of Hotel and Tourism Management |
| Pages: | xiv, 352 pages : color illustrations |
| Language: | English |
| Abstract: | Revenue management (RM) practice has remained integral to hotel business operations. As a key strategy in the hotel industry, RM has played a major role in driving revenue optimization. Consequently, implementing an effective RM strategy is vital to maximizing the benefits of RM. However, due to the complex and dynamic nature of operations, the hotel industry has experienced challenges from different perspectives in recent years that have severely hampered its performance and growth. To address these challenges, stakeholders should thoroughly understand the critical factors (CFs) influencing the implementation of strategies. In addition, stakeholders must develop appropriate business tactics to cope with present and future challenges to ensure their business' survival. Despite numerous studies documenting the paybacks and drawbacks of the RM strategy in the hotel industry, few studies have specifically focused on the implementation of the RM strategy. Consequently, there is limited awareness of CFs for RM strategy implementation as existing information is unclear or fragmented. Therefore, this study explores and identifies the CFs of RM strategy implementation in the hotel industry and their impact on its effectiveness. The study examines five main objectives: (1) to identify the dimensionality of CFs for RM strategy implementation in the hotel industry, (2) to model the interrelationship among the identified CFs for RM strategy implementation in the hotel industry, (3) to examine the relationship between CFs and RM strategy effectiveness in the hotel industry, (4) to examine the moderating effects of the RM strategy approach, and (5) the moderating effects of RM implementation level on the relationship among CFs, and RM strategy effectiveness in the hotel industry. An exploratory sequential mixed-method research design was employed in this study. In the first phase, a Fuzzy Delphi Method and Fuzzy Analytic Network process were used to validate the identified CFs. In the second phase, a survey was conducted, and data was collected from 683 hotels from ten countries. An Exploratory Factor Analysis (EFA) and multiple regression analysis were used to examine factors and predict the relationships between CFs, RM strategic approach, RM level of implementation, and RM strategy effectiveness. Seven critical factors, namely 1) organizational factor, 2) monitoring factor, 3) human resource factor, 4) operational factor, 5) technological factor, 6) culture factor, and 7) evaluation factors, were identified by this study. All the factors had a significant positive influence on RM strategy effectiveness. Additionally, the RM strategy implementation level and approach partially moderated the relationship between CFs and the effectiveness of RM. Theoretically, this study identified CFs for implementing the RM strategy from a global perspective, thus enriching the literature. Additionally, the study investigates the predictive effects of CFs on RM effectiveness, the moderating effects of the strategic approach, and the level of implementation. Knowledge of these relationships will assist in identifying the most influential factors and how they affect other factors and influence RM strategy effectiveness. Finally, by employing a modified total interpretative structural modeling (m-TISM), the study proposes an integrated model of the interrelationship among CFs. Verifying these predictive effects enriches the literature as it helps explain the relationship between the factors and performance. Practically, the study provides hotel practitioners and revenue managers with insight into effectively implementing the RM strategy. Understanding these factors assist revenue managers in knowing the elements within their control. Secondly, the study provides the decision makers and RM system suppliers with a RM strategy implementation model to guide the strategy execution. |
| Rights: | All rights reserved |
| Access: | open access |
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