The Role Demographics Have on Customer Involvement in Obtaining a Hotel Discount and Implications for Hotel Revenue Management Strategy

Lee, Seung Hyun; Bai, Billy; Murphy, Kevin

doi:10.1080/19368623.2012.682622

Cited by 21 publications

(22 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…In a more recent study, Heo and Lee (2011) suggest that young hotel guests and more educated people tend to perceive revenue management (RM) pricing as fair in the hotel context. Lee et al (2012) illustrate that females and less-educated customers tend to indicate higher interest in obtaining a discounted hotel-room rate.…”

Section: Customer Characteristicsmentioning

confidence: 87%

“…Previous studies illustrate that market segmentation is crucial for implementing the IJCHM 26,6 Setting hotel rate restrictions differential pricing practice of revenue management (Lee et al, 2012;. However, a distinguishing feature of market segmentation in revenue management is that the firm does not have precise information about the preferences of individual customers.…”

Section: Discussion and Managerial Implicationsmentioning

confidence: 99%

“…The previous literature indicates that customers with certain demographic profiles, such as age, education and gender, tend to have different acceptance levels for discounted prices (Duman and Matilla, 2003;Lee et al, 2012;Rosa-Diaz, 2004). Duman and Matilla (2003) investigate the role of demographic variables that influence cruise travelers' discount acceptance and usage behavior.…”

Section: Customer Characteristicsmentioning

confidence: 99%

“…Uncertainty about hotel customer segmentations might lead to uncertainty about how to provide discounts (Lee et al, 2012). Lee et al (2012) also argue that hotels need to update their customer profiles frequently in response to dynamic environments. Therefore, this study examines the role of certain demographic profiles and customers' travel behavior in influencing customers' purchase choice of hotel rooms, using the conjoint analysis method.…”

Section: Customer Characteristicsmentioning

confidence: 99%

See 3 more Smart Citations

Can setting hotel rate restrictions help balance the interest of hotels and customers?

Guillet

Liu

Law

2014

International Journal of Contemporary Hospitality Management

View full text Add to dashboard Cite

Purpose – The purpose of this study is to assist hoteliers to design hotel rate restrictions that are in the interest of hotels and of customers, under the joint influence of room rates and rate fences. Design/methodology/approach – This study used a questionnaire as the data collection instrument. Conjoint analysis was applied to examine customers’ preferences regarding hotel rate fences. Findings – The results indicate that refundability, price and advance requirement, in that order, are identified as the most important attributes in the overall decision-making process of customers. Changes allowed and rule type are comparatively less important attributes. Research limitations/implications – This study extends the hotel revenue management literature by examining customer preferences for hotel rate restrictions based on their socio-demographic characteristics and travel behavior. This study also illustrates the usefulness of conjoint analysis in determining the utility values of hotel-room rates and rate fences. Practical implications – The findings of this study may help professional hoteliers to better understand customers’ decision-making process and underlying needs, thus helping them to design attractive rate fences that are in the interests of both hotels and customers. Originality/value – This study is the first to investigate customer preferences regarding hotel rate restrictions based on demographic and travel behavior information. The identification of these preference values should help hoteliers to identify the decision-making processes and needs of customers.

show abstract

Section: Customer Characteristicsmentioning

confidence: 87%

Section: Discussion and Managerial Implicationsmentioning

confidence: 99%

Section: Customer Characteristicsmentioning

confidence: 99%

Section: Customer Characteristicsmentioning

confidence: 99%

See 2 more Smart Citations

Can setting hotel rate restrictions help balance the interest of hotels and customers?

Guillet

Liu

Law

2014

International Journal of Contemporary Hospitality Management

View full text Add to dashboard Cite

show abstract

“…Except from these above-mentioned activities, governments and other authorities can apply some influential strategies such as making discount to increase usage of these countries. This is because discount has been used as an effective tool to increase demands of good and services (Lee et al, 2012). Discounts provide economic and social benefits for individuals by depending on individuals' trust to discount maker (Lee et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

The Importance of Discount Rate and Trustfulness of A Local Currency for the Development of Local Tourism

Civelek¹,

Ključnikov²,

Krajčík

et al. 2019

JoTS

View full text Add to dashboard Cite

Local currencies have been used to achieve local economic, social and environmental goals that are not attained by national currencies. Thus, they can also be applied as a mean of the regional development focused on the development of the local tourism. However, trustworthiness and costs of local currencies have been some of the main impediments in their widely usage. Therefore, discount rates that practitioners (including municipal authorities and governments) of local currencies present for potential users might play a key role to deal with these issues. Within this context, this research intends to assess the relationship between discount rates that potential users demand to use local currencies (a paper-based and a digital) and their trust to these currencies. To hit this target, a questionnaire survey was directed to 407 employees of a regional business in Cieszyn Silesia region and the responses were analyzed by binary logistic regression test in SPSS Statistical Software. The results confirm that potential users with more trust to local currencies have more tendencies to demand higher discount rates. Cultural values, occupational status, age, income levels of respondents and potential roles of governments and local authorities in local currency implementations might be the reasons of these findings.

show abstract

Exploring the Role Of Human Judgment in Making Discount Decisions in the Lodging Industry

Lee

Croes

Rivera

2015

The Journal of Hospitality Financial Management

Self Cite

View full text Add to dashboard Cite

This study assesses the process of making pricing decisions, specifically discounts, in the lodging industry. The study applied a qualitative technique employing structured interviews of hotel managers in the United States. The assessments included the narration of events, stages, and cycles of choices made by hotel managers. The findings of the study enhanced the understanding of how management's discount choice was constructed. In addition, this study identified the habitual management practices in the lodging industry such as "less-than-35 rule," "trial and error," and "follow suit." To confirm the findings from the interviews, a follow-up study was conducted. The survey was designed to learn what kinds of information managers rank highly when considering price adjustments in their operations. Different rankings on information attributes among departments were investigated; results show that managers from different departments rank some information elements differently. Learning the process of a discount choice provided new insights on managerial resources and capabilities required to set and change prices in the lodging industry.

show abstract

The Role Demographics Have on Customer Involvement in Obtaining a Hotel Discount and Implications for Hotel Revenue Management Strategy

Cited by 21 publications

References 35 publications

Can setting hotel rate restrictions help balance the interest of hotels and customers?

Can setting hotel rate restrictions help balance the interest of hotels and customers?

The Importance of Discount Rate and Trustfulness of A Local Currency for the Development of Local Tourism

Exploring the Role Of Human Judgment in Making Discount Decisions in the Lodging Industry

Contact Info

Product

Resources

About