How does hotel pricing influence guest satisfaction by the moderating influence of room occupancy?

Chen, Chiang-Ming; Yang, Ho-Wen; Li, Eldon Y.; Liu, Chia-Chang

doi:10.1016/j.ijhm.2015.06.006

Cited by 33 publications

(21 citation statements)

References 11 publications

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“…Hotel room pricing received considerable attention in the literature (e.g., Arenoe, van der Rest, & Kattuman, 2015; Bayoumi, Saleh, Atiya, & Aziz, 2013; Becerra, Santalo, & Silva, 2013; Castro, Ferreira, & Ferreira, 2016; Chen, Yang, Li, & Liu, 2015; Li, Rasekh, Wang, & Miao, 2016; Schamel, 2012), as did the question of customers’ willingness to pay, and their room-rate expectations (e.g., Chang, Hsiao, Nuryyev, & Huang, 2015; Chia-Jung & Pei-Chun, 2014; De Menezes et al, 2008; Heo & Hyun, 2015; Kang, Stein, Heo, & Lee, 2012; Masiero, Heo, & Pan, 2015; Monty & Skidmore, 2003; Wong & Kim, 2012). However, the relationship between LOS and hotels’ room pricing practices (the focus of this study) is yet to be investigated.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Revenue Management and Length-of-Stay-Based Room Pricing

Riasi

Schwartz

Li³

et al. 2017

Cornell Hospitality Quarterly

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From a theoretical perspective, it is unclear whether hotels should offer a discount to customers who stay for longer periods, while it is rather clear that customers feel entitled to such length-of-stay (LOS)-based discounts. Accordingly, the major theoretical contribution of this study is to provide empirical evidence of hotels’ LOS-based pricing practices. The findings revealed that on average, hotels charge more per night when the guests stay longer. The finding that hotels increase their room rates as LOS increases, suggests that hotel revenue managers may want to address the customers’ misinformed expectations of getting lower prices for longer LOS and/or devise pricing or communication strategies to deal with it.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Revenue Management and Length-of-Stay-Based Room Pricing

Riasi

Schwartz

Li³

et al. 2017

Cornell Hospitality Quarterly

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“…Chen et al [24] examined the impact of hotel pricing on guest satisfaction. Their results imply that, at the low price level, room price and food and beverage price lead to an increase in guest satisfaction, whereas the high price level could have just the opposite effect.…”

Section: Revenue Managementmentioning

confidence: 99%

Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain

Yang

Chen

2016

Discrete Dynamics in Nature and Society

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This paper explores a two-echelon tourism supply chain consisting of a hotel and an online travel agency. The upside hotel rooms can be sold through the downside hotel alliance and online travel agency. The hotel alliance, selling rooms at a lower price, is a direct sale platform with a negligible entry fee. Notwithstanding, the online travel agency sells the room at a higher price with related personalized service. Customers will be refunded partially in case of their cancellation or no-show. An integrated model and two decentralized models based on Bertrand and Stackelberg games are developed, respectively. The results show that when the wholesale price is lower than a certain value, both the hotel and the online travel agency can gain more profit from the Stackelberg game than that from the Bertrand game. In the case that the hotel allows overbooking, the optimal overbooking quantity is obtained. If the overbooking proportion is too high, overbooking is profitable for the hotel only when the overbooking cost is lower than a certain value. At the end of the study, some experiments are conducted to analyze the sensitivity of the optimal prices and profits in the light of certain parameters.

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“…Occupancy rate has been one of the most prominent hotel performance metrics used by the tourism industry (Chen et al, 2015). A significant number of forecasting techniques have been studied to determine occupancy rate.…”

Section: Introductionmentioning

confidence: 99%

Identification of common city characteristics influencing room occupancy

Moro

Rita

2019

IJTC

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Purpose National tourism offices worldwide implement marketing strategies to influence tourists’ choices. However, there is more than meets the eye when it comes to choosing a city as a tourism destination. The purpose of this paper is to answer which are the characteristics that play a key role in room occupancy. Design/methodology/approach Diverse characteristics such as the city offer, demographics, natural amenities (e.g. number of beaches) and also politics (e.g. type of government) are combined into a decision tree model to unveil the relevance of each in determining room occupancy. The empirical experiments used data known in 2015 from 43 cities from Europe and the rest of the World to model room occupancy rate in 2016. Findings While the seasonality effect plays the most significant role, other less studied features such as the type of political party prior to current government were found to have an impact in room occupancy. Originality/value This study unveiled that center–right and right governments are generally more sensitive to promote its city as a tourism destination.

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How does hotel pricing influence guest satisfaction by the moderating influence of room occupancy?

Cited by 33 publications

References 11 publications

Revenue Management and Length-of-Stay-Based Room Pricing

Revenue Management and Length-of-Stay-Based Room Pricing

Game Models on Optimal Strategies in a Tourism Dual-Channel Supply Chain

Identification of common city characteristics influencing room occupancy

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