Towards a knowledge discovery framework for yield management in the Hong Kong hotel industry

Yield management is a technique focusing management decision making on maximizing revenue or profit from the sale of hotel rooms. In our study, we develop a yield management technique for maximizing revenue using a probabilistic rule-based framework in Knowledge Discovery technique. The paper starts the investigation with a theoretical framework that sets the profit maximization criteria for a hotel. The key role of yield management is to provide hotel managers with an effective means to achieve maximum revenue in a changing market environment by allocating the sale of accommodations to different customer categories through a set of decision rules.