How empowerment influences revenue management and service quality: the case of a New Zealand hotel

The management of revenue within a hotel has a direct impact on the financial success of the business. Over the past few years, there has been a lot written about revenue/yield management within hotels; however, research linking influence of services provided by the human resource of a hotel on the revenue of a hotel is sparse. The aim of this study is to explore employee empowerment perceptions and practice in a selected international hotel chain in New Zealand and its impact on improving service quality and in turn on the revenue of a hotel. No matter how good a revenue/yield management system is, it is evident internationally that it is the humans working in a hotel and particularly their decision-making that make a significant difference to revenue. The study explores a sparsely researched area in a different geographic location with specificities of influence of empowerment practice for improved service quality and revenue management in a New Zealand hotel.