Revenue management strategies under the lunar–solar calendar: Evidence of Chinese restaurant operations

Chan, Wai Hung; Chan, Lena C.

doi:10.1016/j.ijhm.2007.10.001

Cited by 11 publications

(4 citation statements)

References 23 publications

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“…The buffet price was increased only during the Chinese New Year holidays, but not on regular weekends. This is consistent with the approach reported by Chan and Chan (2008) in their study of revenue management strategies in Chinese restaurant operations. Given this situation, nine research questions were posed in this study to implement ABP at the buffet:…”

Section: Methodssupporting

confidence: 91%

Activity‐based pricing: can it be applied in restaurants?

Raab

Mayer

Shoemaker

et al. 2009

International Journal of Contemporary Hospitality Management

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Purpose -This paper aims to demonstrate how activity-based pricing can be applied in a restaurant setting by combining the use of price sensitivity measurement with activity-based costing. Design/methodology/approach -Data are collected at a Hong Kong buffet restaurant, based on guests' price perceptions and the establishment's detailed cost structure. These data are analyzed by using price sensitivity measurement techniques and activity-based costing methods, separately, and then combined to create an activity-based pricing analysis of the restaurant's menu. Findings -The use of activity-based pricing techniques reveals that, although the guests are relatively price-insensitive, drastic measures were needed to reduce costs for the restaurant to become profitable. Without the benefit of this study, the restaurant's management would not have been able to see clearly the nature of the challenges that they faced, since a single pricing study, or cost study, would have missed the combined cost and pricing effects that were captured by activity-based pricing.Research limitations/implications -Activity-based pricing is shown to be a powerful technique that can be applied effectively in a restaurant. Utilizing this method allows a restaurant truly to understand both its operating cost structure and the price perceptions of it guests. Since this study involved only a single buffet restaurant, further research should be conducted to confirm that activity-based pricing can also be applied in other restaurant and hospitality industry settings. Practical implications -The findings from this study suggest that activity-based pricing may be a viable way for restaurant managers to gain a better understanding of both their guests' price perceptions and the true cost structure of their restaurants. Use of activity-based pricing allows restaurant managers to set price levels that cover all operating costs and profits, while still meeting guests' expectations of value. Originality/value -This study is the first of its kind in the hospitality literature, since no prior research has applied activity-based pricing in a hospitality research setting. This study represents an important new addition to the existing body of hospitality cost and pricing literature.

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Section: Methodssupporting

confidence: 91%

Activity‐based pricing: can it be applied in restaurants?

Raab

Mayer

Shoemaker

et al. 2009

International Journal of Contemporary Hospitality Management

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“…Meanwhile, culture, as represented by the choice of an auspicious wedding date, was the least influential extrinsic personal attribute. This is surprising and contradicts the finding of Chan and Chan (2008) that more banquets occur on auspicious solar-lunar dates. Although ancient customs continue to have a profound influence in Hong Kong, the couples in this study did not demonstrate superstitious beliefs about picking a lucky date for their wedding, and most likely picked a day that was meaningful for them.…”

Section: Personal Attributescontrasting

confidence: 85%

“…Chinese tradition has a Roering and Block (1979), and Reid (1989). profound influence in Hong Kong, and more banquets are held on auspicious dates of the Chinese lunar-solar calendar (Chan and Chan, 2008). Finally, socioeconomic level influences where and how the customer feels they should purchase (Engel et al, 1990).…”

Section: The Decision-making Processmentioning

confidence: 99%

Selection attributes of wedding banquet venues: An exploratory study of Hong Kong prospective wedding couples

Lau

Hui

2010

International Journal of Hospitality Management

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“…Among non-traditional RM industries, restaurant RM is one of the most researched areas of the last ten years. discussed the role of technology in restaurant revenue management, Chan and Chan (2008) showed how the lunar-solar calendar-driven festivals affect Chinese restaurant operation and revenue, and a simulation study by Thompson (2009) found that reducing dining duration increases revenue only by about one-quarter of that expected. Thompson and Sohn (2009) found inaccuracies in the existing approaches to calculating RevPASH, a common metric of restaurant revenue performance, and Thompson (2010) presented a new decision-based framework for restaurant profitability.…”

Section: Application Of Revenue Management In Non-traditional Servicementioning

confidence: 99%

Revenue Management: Progress, Challenges, and Research Prospects

Wang

Heo

Schwartz

et al. 2015

Journal of Travel & Tourism Marketing

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International audience

This paper evaluates the main developments of revenue management (RM) over the past decade and discusses RM challenges and research prospects. It examines nine notable emerging themes: total hotel RM, big data analytics, distribution, rate integrity, RM and marketing strategies alignment, social media impacts on RM, RM system, applications of RM in nontraditional service sectors, and RM education and training. We argue that these developments have far-reaching implications for real-world RM practice and anticipate that the topic areas will continue to be popular for hospitality and tourism research in the foreseeable future.

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Revenue management strategies under the lunar–solar calendar: Evidence of Chinese restaurant operations

Cited by 11 publications

References 23 publications

Activity‐based pricing: can it be applied in restaurants?

Activity‐based pricing: can it be applied in restaurants?

Selection attributes of wedding banquet venues: An exploratory study of Hong Kong prospective wedding couples

Revenue Management: Progress, Challenges, and Research Prospects

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