This conceptual paper aims at identifying a theoretical framework for the determinants of revenue management (RM) practices and their impacts on the financial performance of hotels. To create this framework, a two-phased process is employed where the first stage involves an explicit examination of the literature related to practices of revenue management and their determinants and to hotel financial performance. The second stage involves an enhancement of the framework. The theoretical structure is developed based on past theoretical explanations, and empirical analysis is conducted in the fields of revenue management. The researchers propose a theoretical framework illustrating how revenue management practices and their determinants affect the financial performance of Kenyan hotels. The use of contingency theory and its justifications and inadequacies among studies on revenue management in hotels is highlighted. The methods highlighted by the reviewed theoretical framework may be utilized to organize revenue management (RM) practices and their determinants for Kenyan hotels. Measurements for the financial performance of hotels are also described. Last, the researchers call for empirical research that authenticates the proposed model using a cross-sectional survey. The present work can inspire scholars and specialists to determine how RM practices and their determinants impact the financial performance of hotels. By assimilating knowledge from numerous disciplines, this paper emphasizes aggregated awareness surrounding the conceptualization of RM, RM practices adopted in hotels, and the financial performance of hotels.

The study aimed at investigating the mediation role of revenue management (RM) practices on the linkage between the internal and external hotel determinants and the financial performance of hotels in Kenya. The study used a quantitative approach adopted a cross-sectional survey research design. The study sampled 225 revenue managers from all-star-rated hotels in Kenya. Data were collected by use of a questionnaire. The findings revealed that, there was evidence of RM practice in hotels (M = 2.44, SD = 0.671) and that the application of RM has some impacts on the financial performance of hotels (M = 3.35, SD = 1.05). Further, the finding revealed a direct relationship between internal and external hotel determinants and financial performance of hotels (R = 0.457, Sig. < 0.05). And an indirect relationship between the internal and external hotel determinants and RM practices (R = 0.478, sig. < 0.05), and further, RM practices and financial performance of hotels (R = 0.751 sig. < 0.05). The finding concluded that RM practices mediate the relationship between internal and external hotel determinants and financial performance (R = 0.759, sig. < 0.05). The beta value for internal and external hotel determinants that was initially (0.457) (in the direct relationship) reduced to (0.127) after introducing RM practices as a vector mediator. The result shows that there is partial mediation, meaning that RM practices partially mediate the relationship between internal and external determinants and the financial performance of hotels. The findings recommend that hotels should enhance the adoption of RM practices to reduce the negative impacts of determinants and aim to contribute to hotels' financial performance. The research adds to the body of empirical evidence for revenue management and How to cite this paper: Murimi, M., Wadongo, B., & Olielo, T.

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The study's goal was to investigate how revenue management (RM) techniques affect the financial performance of Kenya's star-rated hotels. The study aimed to examine if RM policies and implementation, the RM team, the application of RM methodologies, RM data and information, and the use of pricing and non-pricing instruments were all factors. The study used a cross-sectional survey research methodology and took a quantitative approach. The survey included 137 revenue managers from Kenyan all-star hotels. The structural equation modeling was used to test the linkages; revenue management strategies have an impact on hotel financial success, according to the research. The results indicated that RM practices explain variation in financial performance indicators by 42.7 percent (R2 =0.427), improved financial performance by 48.4 percent (R2 =0.48.4), and overall performance by 47.4 percent (R2 =0.474). The article recommends that hotels adopt RM tactics to fully achieve and maximize financial performance, including reducing operational expenses, forecasting hotel growth, improving yields, and generating income.