Analyzing Sales-Mix Profitability

The strategic planning/finance interface: does sophistication really matter?

“…They argued that few operators measure all the relevant costs in obtaining and servicing each segment, together with the non-room profit (or loss) produced by each segment. Quain (1992), in developing the approach by Dunn and Brooks (1990), included the marketing team's knowledge of buying behaviour into their analysis. Quain's (1992) MSA technique, called profit analysis by segment (PABS), uses a combination of marketing information and cost analysis.…”

“…Quain (1992), in developing the approach by Dunn and Brooks (1990), included the marketing team's knowledge of buying behaviour into their analysis. Quain's (1992) MSA technique, called profit analysis by segment (PABS), uses a combination of marketing information and cost analysis. The technique involves two steps: 1 identifying average revenue generated by differing market segments; and 2 calculating the contribution margin (sales less variable costs) for each segment.…”

“…In his conclusion, Quain (1992) posits that PABS will provide hoteliers with a better understanding of customers' buying habits and the true cost of serving those customers. The third most popular managerial tool used by hoteliers was SWOT analysis.…”

Yield Management and its Practical Application in Hotels

“…Likewise, beach resorts enjoy high demand during the summer months while ski resorts enjoy high demand during winter months. Each customer segment will have its own, unique demand pattern (Quain, 1992) .…”

Yield management — a model for implementation

“…It is recognised that each hospitality property will have different pressures and operating conditions, which combined may affect the application and use of yield management (Quain, 1992). These differences can often be seen in the style/location of the speci®c property.…”