Facing the challenges: revenue management in UK hotels in an uncertain time

While politicians and economists across the EU continue to seek a way out of what has been deemed the worst financial crisis in decades, revenue management (RevM) practitioners in the hospitality industry are also facing unprecedented challenges to survive through these uncertain times. Since the economic downturn the market has become smaller and the competition between hotels has escalated. Pricing power has unavoidably shifted to customers following the declining market demand. Upscale hotels compete with medium-scale hotels, and medium-scale hotels compete with limited service hotels.
This study was carried out in June 2011, three years into the recession, to examine RevM dynamics in the UK hotel industry. More specifically, it attempts to identify the ongoing challenges that are faced by RevM practitioners in London, and the resulting changes in RevM practice that may have occurred since 2008 in the UK. Fifteen RevM practitioners participated in this study. They include Revenue Managers, Rooms Division Directors, General Managers from eight upper-market UK hotels, and Revenue Management Consultants. The findings of this study should make a timely contribution to RevM literature by providing some insights into RevM practices in UK hotels, and their implications for hospitality marketing during this uncertain time.