Yield management and perceptions of fairness in the hotel business

Mauri, Arnaldo

doi:10.1007/s12232-007-0015-4

Cited by 45 publications

(48 citation statements)

References 28 publications

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“…Especially, framing and fencing condition have strong effects on fairness perception when customers are less familiar with a RM pricing. Mauri (2007) Yield management and perceptions of fairness in the hotel business Hotel Various aspects of customers' perceptions regarding RM are discussed and managerial techniques that hotel companies can employ to manage customer conflicts resulting from perceived unfairness due to RM practices are suggested.…”

Section: Wirtz and Kimesmentioning

confidence: 99%

“…Several researchers suggested that individuals' characteristics should be considered as potential covariates for future research of pricing issues (Xia et al, 2004). Mauri (2007) mentioned the social norms' possible variance among different market segments based on nationality, geography, social class, age, etc. However, to date, such issues have little, substantive exploration in the hospitality literature.…”

Section: Price Consciousnessmentioning

confidence: 99%

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Influences of consumer characteristics on fairness perceptions of revenue management pricing in the hotel industry

Heo

Lee

2011

International Journal of Hospitality Management

100

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Section: Wirtz and Kimesmentioning

confidence: 99%

Section: Price Consciousnessmentioning

confidence: 99%

Influences of consumer characteristics on fairness perceptions of revenue management pricing in the hotel industry

Heo

Lee

2011

International Journal of Hospitality Management

100

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“…Hotels reduce this loss by adopting overbooking strategy to ensure full room occupancy and to maintain a high occupancy rate [9][10][11]. Overbooking is defined as selling more rooms than hotel capacity, which is performed when a certain number of booked customers are anticipated to cancel or not to show up [12].…”

Section: Introductionmentioning

confidence: 99%

Hotel Overbooking and Cooperation with Third-Party Websites

Dong

Ling

2015

Sustainability

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Hotels cooperate with third-party websites to enhance their competitive position and attain sustainable development in the era of e-commerce. Furthermore, hotel managers overbook to hedge against last-minute cancellations and customer no-shows. This paper discusses pricing and overbooking strategies of a hotel in the context of cooperation with multiple third-party websites and analyzes how these strategies influence the cooperation process. The increase in profits resulting from the overbooking strategy is also examined. A model of a Stackelberg game between the hotel and third-party websites and a Nash game among the third-party websites are developed to analyze the process. Results indicate that the compensation coefficient has a slight influence on hotel pricing strategy, but causes a sharp decrease in overbooking level. As the hotel demands to lessen the probability of denying under higher compensation rate, the third-party websites would exert less sales effort to reduce the demand of online customers. Results also show that under a given market demand, hotel effort only serves to redistribute market shares among the hotel and third-party websites, without influencing hotel pricing and overbooking decisions. Specifically, the market shares of the third-party websites decrease in the effort level of the hotel resulting from an increase in the hotel market share. Finally, in the numerical example where one hotel and two websites are analyzed, hotel overbooking strategy improves hotel profit by 4.20%, whereas profit improvements for Websites 1 and 2 are as high as 5.26% and 5.21%, respectively. Managerial implications of the study are also provided.

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“…Correspondingly, customers have different perceptions of the fairness of a variable pricing strategy (Kimes and Wirtz, 2003a, b). Therefore, it is important to empirically examine the influence of this strategy on customer perceptions of price fairness (for eaxmple, Kahneman et al, 1986;Campbell, 1999;Kimes, 2002;Kimes and Wirtz, 2003a, b;Xia et al, 2004;Choi and Mattila, 2005;Martín-Consuegra et al, 2007;Mauri, 2007). On the basis of the applicability of a variable pricing strategy to beverage establishments, the following three research questions have emerged:…”

Section: Introductionmentioning

confidence: 99%

The effect of the type-pricing strategy on perceived price fairness and behavioral outcomes in beverage establishments

Bujisic

Bilgihan

Hutchinson

2014

J Revenue Pricing Manag

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and information systems is from Bilkent University. He has several academic publications in the area of e-commerce and Information Systems. He serves on the editorial board of international journals.Joe Hutchinson is an Associate Professor and Chair of the Department of Foodservice and Lodging Management. He has a number of years of management consulting experience with large international accounting/ consulting firms. He also was involved in the management of both chain and independently operated casual theme restaurants. He has taught courses in restaurant management, food and beverage cost controls, club management, tourism management, casino management, hospitality accounting, hospitality finance, intro to hospitality, guest services, hospitality law and timeshare operations. His research interests include customer satisfaction, service quality, golf travelers and destination marketing.ABSTRACT Lately, beverage establishments have grown in popularity by generating over US$18 billion in annual revenue in the United States, however research on this industry is very limited. The main purpose of this article is to investigate the influence of pricing strategies for beverage establishments on price fairness and the subsequent behavioral outcomes. In this article, we used a sequential transformative mixed method design. The first part of the study involved interviews with the managers of beverage establishments and a focus group study. In the second part of this study, a theoretical model was tested with an experimental design. The findings suggest that regular customers should be rewarded with more stable prices, while prices can be more varied for low-patronage customers. As one of the first empirical studies in the context of beverage establishments, the results of this study broaden the understanding of pricing strategies in the context of beverage establishments and serves as a foundation for further research.

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Yield management and perceptions of fairness in the hotel business

Abstract: yield management, revenue management, perceived fairness, hotels,

Cited by 45 publications

References 28 publications

Influences of consumer characteristics on fairness perceptions of revenue management pricing in the hotel industry

Influences of consumer characteristics on fairness perceptions of revenue management pricing in the hotel industry

Hotel Overbooking and Cooperation with Third-Party Websites

The effect of the type-pricing strategy on perceived price fairness and behavioral outcomes in beverage establishments

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