A Study On The Fitness Assessment For The Introduction Of The Hotel Revenue Management System

The purpose of this paper is to establish an assessment system for the introduction to the hotel revenue management system (RMS) in order to provide findings for the introduction decision. The focus of hotel revenue management (RM) research is mainly on the predication Algorithms and mathematical modeling, but little on its application, especially less on the RMS application. However, RMS is becoming an strategic weapons to obtain competing advantages. Comparing to the prosperity and achievement of RMS application in foreign countries, RM and RMS of China’s hotel is still at rudimentary stage both from theory and practice. The main literature on RM and RMS are based on the background of European and North American areas, while few on China’s specific background. Applying the mature RM to China’s service industry is an urgent task for both academia and practioners.The introduction an application of RMS is one of the most important decisions for hotel. Some hotels achieved great success when introducing and applying RMS, some hotels didn’t. So the above phenomenon shows that there is a fitness problem for introducing RMS.Four-star hotels and five-star hotels are the objectives of this paper. According to the frame of Strategy Management, the initial assessment system comes into being through literature review and expert demonstration; and the indicators for the final evaluation system are determined by two rounds of the Delphi method. After the confirmation of all the indicators, the weight is determined by method of Group Decision Making Analytic Hierarchy Process (AHP) in order to synthesize different viewpoints from different experts to obtain relatively objective weights. The fitness assessment system for the introduction to the hotel revenue management system is finally established by Fuzzy Analytic Hierarchy Process (FAHP) method. A China’s local brand hotel (RMS not installed) and A brand hotel from European and American countries (RMS installed) have been chosen to test the assessment system. The result shows that brand hotel from European and American country is very fit, especially for the rules and regulations of hotel RM and revenue culture. And China’s local brand hotel is only basically fit because of the low scores of hotel information resources rules and regulations of hotel RM, revenue culture. By comparing the main indicators, suggestion to the improvement is provided to introduce revenue management system for China’ local brand hotels.A study on the fitness assessment for the introduction to the hotel revenue management system can really boost better application of RM and RMS. Thus, China’s local brand hotels can improve hotel management; obtain more profit without competing with each other with low price.