Revenue management: Profit optimisation for Hong Kong travel agencies

Research output: Chapter in book / Conference proceedingChapter in an edited book (as author)Academic researchpeer-review

Abstract

Increasing operational costs and narrowing profit margins are forcing many Hong Kong travel agencies out of business. Studies have demonstrated the strategic importance of revenue management (RM) implementation for travel agencies that wish to remain competitive. Hong Kong travel agencies should learn from these examples and modify their existing practices. As travel agencies have many of the characteristics of traditional and non-traditional RM industries, they should be able to adopt the RM operational strategies that have been successful in other industries. This study's methodology is qualitative; in-depth interviews are conducted with 10 industrial professionals. The results provide valuable insights into RM implementation in Hong Kong travel agencies. The implementation strategies discussed here include the use of perishable inventories, predictable demand, segmentation, reservations made in advance, limited capacity and appropriate cost and pricing structures, all of which aid in profit optimisation. The results indicate that RM can improve travel agencies' competitive stance and enhance profit maximisation. RM practitioners need to fully understand the concept and techniques and have the determination to develop and promote the system among personnel at every level of the travel agency.
Original languageEnglish
Title of host publicationAdvances in Culture, Tourism and Hospitality Research
Pages95-111
Number of pages17
DOIs
Publication statusPublished - 1 Jan 2016

Publication series

NameAdvances in Culture, Tourism and Hospitality Research
Volume12
ISSN (Print)1871-3173

Keywords

  • Revenue management
  • Revenue optimisation
  • Travel agencies

ASJC Scopus subject areas

  • Social Sciences (miscellaneous)
  • Tourism, Leisure and Hospitality Management

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