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How Hotel Guests Perceive the Fairness of Differential Room Pricing

Author
Taylor, Wayne J.; Kimes, Sheryl E.
Abstract
When customers perceived hotel revenue management practices to be fair, they are more likely to be satisfied with the hotel and are more likely to return to that hotel in the future. In this survey of 815 people, we examined the effects of three factors on the respondents’ assessment of the fairness of hotel rate policies. Those three factors were familiarity with the practice, provision of information about the practice, and the brand class of the hotel. Of those three, we found that familiarity with a pricing practice was far and away the most important factor affecting perceived fairness. The implication is that revenue managers should focus their efforts on increasing guests’ familiarity with their pricing practices.
Date Issued
2010-01-01Subject
Pricing; revenue management; hotels; perceived fairness; brand class; familiarity
Rights
Required Publisher Statement: © Cornell University. This report may not be reproduced or distributed without the express permission of the publisher
Type
article