ABSTRACT
This chapter outlines the performance measurement and management (PMM) literature on hotels against the background of the generic literature in the same area. It explains the key operational aspects of the cost structure of hotels and the variability of demand and fixed capacity, that tends to make them revenue-oriented businesses with revenue management as a key driver of their profitability. Due to the presence of high fixed costs and a high break-even threshold, hotels with a significant rooms operation can be termed market-oriented or revenue-oriented. There is a seasonality also in terms of peak holiday season (July-August), then off or low season (October-March) and finally the shoulder months between high and low season. In 2004, Brignall and Ballantine explore the interaction between PMM systems and the many ways in which organisations strive to improve performance via organisational change programmes. Optimus actively promotes excellence in the Irish hotel industry for achievement of service excellence, best practice and business excellence.
