Utilization of yield management in restaurants

1. Utilization of yield management in restaurants Done By Nart Abaza

2. Abstract • This paper investigates the awareness, self-reported current usage of yield management, in a number of restaurants Jordan, explains in detail, the theoretical side of yield management in various sectors in the travel and tourism industry, A sample of 50 individuals from restaurants in Amman was used. • The study reaches results that Apply Yield management to make better profits and better quality and Efficiency selling decisions.

3. Chapter OneIntroduction • Purpose of study: • Shedding light on the importance of yield/revenue management, and its implementations in a few of Jordan’s restaurants. • Also gaining information of how much is the awareness of this technology is spread, and implemented in the midst of employees, and decision making staff. • Also underlining the importance and usefulness of the implementation of this technology, to influence work effectiveness, efficiency, sales, profitability, productivity improvement and capacity utilization.

4. OBJECTIVES • Presenting a theoretical definition of service Yield management that helps managers in the sector to identify its importance. • Measuring Yield management in the travel and tourism industry. • Measuring the influence of Yield management on increasing profits of the travel and tourism industry. • Measuring the influence of Yield management on Efficiency prising of the travel and tourism industry. • Measuring the influence of Yield management on increasing number of service of the travel and tourism industry. • Measuring the influence of Yield management on Efficiency selling decisions of the travel and tourism industry.

5. STUDY HYPOTHESIS • H0: There is no significant relation between Yield management and Efficiency pricing of services. • H0: There is no significant relation between Yield management and increasing number of service. • H0: There is no significant relation between Yield management and Efficiency selling decisions of services.

6. Population and sampling unit • The population that will be studied is the employees of restaurants in the managerial level, decision makers that determine the current and futuristic trends of the establishment and interested line staff also. • A small random sample of (50) representing the community were asked to fill a list questionnaires statement.

7. Source of Data • Secondary available References: Like books, journals, periodicals and researches that dealt with YM and managerial skills. • 2- Primary References: Like researches including questionnaire which contains two parts: • Part 1 contains general information about the Study Sample . • Part 2 contains the Study Variables statements .

8. Statistical Methods used • Frequency, mathematical means standard deviations. • T test was used to test the hypotheses, or the relation between the dimensions perception measurement.

9. Restrictions of study • The problems that faced the researcher were as follows: • Lack of field studies and researches that dealt with the subject. • Difficulty in measuring the Yield management in the travel and tourism industry, because it is an uncontrollable phenomenon but can be measured by certain methods that depend on personal perception.

10. What’s New about RM • In one sense, RM is a very old idea. Every seller in human history has • faced RM-type decisions. What price to ask? Which offers to accept? • When to offer a lower price? And when to simply “pack up one’s tent” • as it were and try selling at a later point in time or in a different market.. • In terms of theory, at a broad level the problems of RM are not new either. • Indeed, the forces of supply and demand and the resulting process • of price formation.

11. Revenue Management (RM) is a management technique being utilized by an increasing number of service industries in order to maximize the effective use of their available capacity and ensure financial success. These industries all have the characteristics of service, or particularly, they are selling an inventory unit of a piece of time.

12. In hotels, RM is concerned with the market sensitive pricing of fixed room capacity relative to a hotel's specific market segments. The goal of RM is the formulation and profitable alignment of price, product and buyer. As such, RM can be defined in the service industries as a 'revenue maximization technique which aims to increase net yield through the predicted allocation of available inventory capacity to predetermined market segments at optimum price'.

13. Chapter ThreeSTUDY ANALYSIS • Reliability of the instrument of the study: The cronbach' s alpha test was used to test the degree of consistency of the respondents of the of the questions of the questionnaire , the value of the cronbach' s alpha was 82.9% which is good because it is above the acceptable value 60%

14. The Demographical Properties • 66% of the sample is males while 34% are females. • 68% of the sample are bachelor's, and 32%higher school. • 22% of the sample are under 30. • 20% are between (31-40). • 39% are 41-50. • 22% 50 years and more. • 14% of the sample are general managers. • 18% administration directors. • 26% manager in deputy. • 42% department director.

15. HYPOTHESIS Tests • There is significant relation between Yield management and Efficiency pricing of services. • There is no significant relation between Yield management and increasing number of service. • There is significant relation between Yield management and Yield management and Efficiency selling decisions of services.

16. Conclusions • There is significant relation between Yield management and Efficiency pricing of services. • There is significant relation between Yield management and Efficiency selling decisions of services. • By Appling Yield management quality of services will be better and more effective. • By Appling Yield management will increase the profits.

17. Recommendations • Travel and tourism industry should Apply Yield management to make better profits and better quality and Efficiency selling decisions. • Travel and tourism industry should Apply Yield management and to reinvest it in order to make better competition significant. • More studies should be done in the Yield management because there is a lack of studies especially in Arabic. • Results and recommendations of this study should be distributed to the travel and tourism industry to be taken in consideration.