Some professionals think that RM techniques are not important for those managers working in nonprofi t segments of the hospitality industry. They cite the fact that operating budgets in many such facilities are low and their customers constitute a captive audience.

Other RMs would maintain that these type of customers, because of their captive audience status, require more, not less, of an organization’s attention to the prices the customers must pay, as well as the value they receive in their business transactions.

With which group would you agree? Illustrate your position by using a hospitality-specifi c example.