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Effects of Revenue Management Pricing Strategies on Perceived Fairness
Journal article   Peer reviewed

Effects of Revenue Management Pricing Strategies on Perceived Fairness

Lan Jiang and Mehmet Erdem
Journal of hospitality marketing & management, Vol.27(4), pp.424-442
01-01-2018

Abstract

Business Business & Economics Hospitality, Leisure, Sport & Tourism Management Social Sciences Social Sciences - Other Topics
This study aims to examine the potential effects of three revenue management pricing strategies (best rate guarantee, rate (dis)parity, and rate frame) on customers' perceived fairness. A 2 x 2 x 2 factorial between-subjects experimental design was used. Eight scenario-based surveys were employed to evaluate how potential hotel guests react to three different revenue management strategies. The outcome of this study offers a set of guidelines for hoteliers to follow in terms of revenue management pricing strategies across multiple distribution channels, while providing revenue managers with empirically supported suggestions to increase hotel revenue.

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