Revenue management pricing in the hotel sector: Reducing perceived unfairness to encourage willingness to pay

2020 ◽  
Vol 35 (3) ◽  
pp. 102-123
Author(s):  
Sourou Méatchi ◽  
Sandra Camus
Keyword(s):  
Willingness To Pay ◽  
Revenue Management ◽  
Limited Capacity ◽  
Measurement Instruments ◽  
Pricing Models ◽  
Positive Individual ◽  
Hotel Sector ◽  
Affective Dimensions ◽  
Perceived Unfairness ◽  
Cognitive Dimensions

In a context of ever-increasing competition, revenue management pricing (RMP) has become a strategic tool for companies with limited capacity. However, despite its considerable appeal, studies show that RMP has mixed reactions from consumers. The aim of this research is to test levers of actions that can help reduce the perceived unfairness of RMP and thus promote willingness to pay (WTP). Two quantitative samples ( N1 = 325; N2 = 280) allowed us to validate the measurement instruments for the concepts mobilized and to test two explanatory ‘fairness-based pricing’ models. The results show that fairness and transparency have strong positive individual and interaction effects on reducing the cognitive dimensions of perceived unfairness and on reinforcing WTP. However, the effects on the affective dimensions are not confirmed in the two models tested.

Revenue management and price optimization techniques in the hotel sector

2018 ◽  
Vol 24 (6) ◽  
pp. 720-752 ◽  
Author(s):  
Aldric Vives ◽  
Marta Jacob ◽  
Marga Payeras
Keyword(s):  
Revenue Management ◽  
Airline Industry ◽  
New Technologies ◽  
Customer Segmentation ◽  
Optimization Techniques ◽  
Hotel Management ◽  
Price Optimization ◽  
Hotel Sector ◽  
Measurement Effects

Pricing and revenue management (RM) techniques have become a popular field of research in hotel management literature. The sector’s background framework and evolution and the widespread use of new technologies have allowed a customer-oriented approach to be taken to pricing and the development of RM tools, while also contributing to better processes in hotel management performance at individual hotel level. Thus, price optimization (PO) methods that seek to maximize hotel revenue are based on inventory scarcity, customer segmentation and pricing. In the hotel sector, as in the airline industry, different pricing policies have a greater impact than competition measurement effects. This is mainly as differentiation strategies and specific policies at hotels can reduce the pressure of a competitive environment. The main contributions of the article are the presentation, description and classification of the principal RM and PO techniques in hotel sector literature.

scholarly journals Analyzing Willingness to Pay More to Stay in a Sustainable Hotel

2020 ◽  
Vol 12 (9) ◽  
pp. 3730 ◽  
Author(s):  
Montserrat Boronat-Navarro ◽  
José A. Pérez-Aranda
Keyword(s):  
Willingness To Pay ◽  
Sociodemographic Characteristics ◽  
Sociodemographic Variables ◽  
Consumer Intentions ◽  
Hotel Sector ◽  
Sustainability Practices ◽  
Hotel Managers

The aim of this study is to investigate differences in willingness to pay more for sustainable hotels, analyzing whether consumers’ searches for information about sustainability, the importance they assign to sustainability certifications, their previous experiences and sociodemographic variables, are all features that influence consumer intentions. We thus contribute to the literature on the importance of consumers’ concerns and awareness and how they influence consumer intentions regarding sustainability in the hotel sector. Our results, based on a sample of consumers of various nationalities, show that all the variables analyzed can explain the differences between consumers that are willing to pay more for sustainable hotels and those that are not, except those variables capturing sociodemographic characteristics. These results could help hotel managers to establish strategies to retain more responsible consumers and increase awareness of sustainability, and should prompt them to improve their sustainability practices.

Revenue management, hedonic pricing models and the effects of operational attributes

2016 ◽  
Vol 9 (2/3) ◽  
pp. 147 ◽  
Author(s):  
Donald R. Bacon ◽  
Ali Besharat ◽  
H.G. Parsa ◽  
Scott J. Smith
Keyword(s):  
Revenue Management ◽  
Hedonic Pricing ◽  
Pricing Models

scholarly journals Positive Intergroup Contact, Negative Intergroup Contact, and Threat As Predictors of Cognitive and Affective Dimensions of Prejudice

2016 ◽  
Author(s):  
Chris Aberson
Keyword(s):  
Intergroup Contact ◽  
Positive Contact ◽  
Affective Dimensions ◽  
Cognitive Dimensions

Research on intergroup contact suggests that contact relates morestrongly to affective than cognitive dimensions of prejudice. However,work on these forms of prejudice focuses primarily on positive contactexperiences. One goal of this study is to examine whether positive andnegative contact experiences differentially predict affective andcognitive prejudice dimensions of prejudice. The second goal is toexamine intergroup threats as mediators of contact-prejudicerelationships. Results demonstrated that negative contact morestrongly predicted cognitive dimensions of prejudice such asstereotypes. Both types of contact were similarly predictive ofaffective dimensions of prejudice. The mediation of the negativecontact-prejudice relationship was stronger across all dependentmeasures than mediation of the positive contact-prejudicerelationship. Together these results suggest that either form ofcontact predicts affective prejudice but negative contact isparticularly important in explaining cognitive dimensions ofprejudice. Additionally, results suggest an important role forfeelings of threat in explaining contact-prejudice relationships.

An overview of revenue management and dynamic pricing models in hotel business

2018 ◽  
Vol 52 (1) ◽  
pp. 119-141 ◽  
Author(s):  
Andrei M. Bandalouski ◽  
Mikhail Y. Kovalyov ◽  
Erwin Pesch ◽  
S. Armagan Tarim
Keyword(s):  
Revenue Management ◽  
Dynamic Pricing ◽  
Relevant Literature ◽  
Optimization Models ◽  
Pricing Models ◽  
Decision Tools ◽  
Forecasting Methods ◽  
Management Method ◽  
Basic Concepts ◽  
Main Ideas

Basic concepts and brief description of revenue management models and decision tools in the hotel business are presented. An overview of the relevant literature on dynamic pricing, forecasting methods and optimization models is provided. The main ideas of the authors’ customized revenue management method for the hotel business are presented.

An overview of pricing models for revenue management

2016 ◽  
Vol 44 (4) ◽  
pp. 134-134 ◽  
Author(s):  
Gabriel Bitran ◽  
Rene Caldentey
Keyword(s):  
Revenue Management ◽  
Pricing Models

scholarly journals Perceived unfairness of revenue management pricing: developing a measurement scale in the context of hospitality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sourou Meatchi ◽  
Sandra Camus ◽  
Danielle Lecointre-Erickson
Keyword(s):  
Revenue Management ◽  
Critical Incident ◽  
Reliability And Validity ◽  
Three Dimensions ◽  
Measurement Scale ◽  
Measurement Tool ◽  
Content Type ◽  
Two Samples ◽  
Hotel Managers ◽  
Perceived Unfairness

Purpose This paper aims to offer a multi-dimensional scale for measuring the concept of perceived unfairness of revenue management pricing (RMP) in the context of hospitality. Design/methodology/approach To develop a measurement scale for the perceived unfairness of RMP, the authors conducted a qualitative study using the critical incident technique to identify the key components of our measurement tool. They then collected two samples of quantitative data enabling them to have compelling evidence of the scale’s reliability and validity. Findings This research identified three dimensions of perceived unfairness of RMP in the context of hospitality: perceived normative deviation, perceived opacity and negative effects. The new scale proposed here is an alternative measurement instrument that could be useful for detecting and correcting some negative aspects of RMP. Practical implications This measurement scale will help hotel managers to detect potential feelings of unfairness in relation to the RMP policies. It might also be used within the framework of market analyses and pricing strategy plans. Finally, the results of this research show that transparency, fairness and ethics based pricing could help hotel managers increase their revenue-per-available-room during and post COVID-19 pandemic. Originality/value This research develops a complete measurement scale for perceived unfairness of RMP, including cognitive and affective dimensions. The richness of this scale will help hospitality companies effectively identify the indicators that denote perceived unfairness of RMP, making them better equipped to handle customer dissatisfaction.

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