Electronic distribution channels' effect on hotel revenue management

Choi, Sukgeun

doi:10.1016/s0010-8804(02)80015-5

Cited by 64 publications

(79 citation statements)

References 11 publications

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“…Findings in terms of product distribution in this research resonated with the literature in terms of main distribution channel usage, cost of distribution, and rate parity issues (Choi and Kimes, 2002;Mainzer, 2004;Gazolli et al, 2008;Vinod, 2009;Mourier, 2010). The emerging of social media was noted in the Prague Hiltons, but not to the extent that Carroll and Noden (2010) mention.…”

Section: Resultssupporting

confidence: 71%

How economic crisis affects revenue management: the case of the Prague Hilton hotels

Gehrels

Blanar²

2013

Research in Hospitality Management

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Section: Resultssupporting

confidence: 71%

How economic crisis affects revenue management: the case of the Prague Hilton hotels

Gehrels

Blanar²

2013

Research in Hospitality Management

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“…Bookings that once came through travel agents and call centers now come via online channels, as both individuals and corporate travel buyers take advantage of the convenience of Internet channels. Already over one in four bookings in the US are online, up from one in 12 in 2002(PhoCusWright, 2006 Internet-based distribution creates opportunities and problems for revenue managers (S. Choi & Kimes 2002). While more channels available increases reach, potentially allowing hotels to sell more rooms, the cost of using such channels varies greatly.…”

Section: Revenue Management Across Multiple Channelsmentioning

confidence: 99%

“…Discounting only works where both the revenue generated is HOTEL YIELD MANAGEMENT PRACTICES 3 greater than the marginal cost of selling the room, and the discounted rooms sold are incremental (i.e., rooms that would otherwise have gone unsold) (Kimes, 1992). To achieve this, appropriate fences and restrictions need to be in place to stop guests from switching to lower priced rooms (S. Choi & Kimes, 2002).…”

Section: Introductionmentioning

confidence: 99%

Hotel Yield Management Practices Across Multiple Electronic Distribution Channels

O’Connor¹,

Murphy²

2008

Information Technology & Tourism

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In the hotel sector, yield management traditionally balances a supply of perishable room nights against demand by manipulating price and time of consumption. While widely accepted, Internetbased distribution channels with different cost structures complicate the process. Hotels must not only manipulate price in response to supply and demand, but must also choose which portfolio of distribution channels to use. This study investigates whether up-market European hotels use three yield management practices: varying room rates with market demand; varying participation in Internet channels with market demand; and differentiating rates on Internet channels in times of high demand. Introducing the concept of a consumer price index for hotel rates, the study found that while one quarter use the first technique, use of the two other practices was considerably lower, suggesting a lack of sophisticated yield management among participants.

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“…This is mainly achieved through dynamic pricing and inventory allocation. More recently, sellers begin to take advantage of the Internet to sell perishable products online (Choi andKimes 2002, Liddle 2003). To many sellers, the Internet offers a new opportunity to implement revenue management techniques such as dynamic pricing because price changes are easy, inexpensive, and potentially more effective.…”

Section: Introductionmentioning

confidence: 99%

Strategic Consumer Response to Dynamic Pricing of Perishable Products

Cho

Fan

Zhou

2009

International Series in Operations Research &Amp; Management Science

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Dynamic pricing is a standard practice that sellers use for revenue management. With the vast availability of pricing and inventory data on the Internet, it is possible for consumers to become aware of the pricing strategies used by sellers and to develop strategic responses. In this paper, we study the strategic response of consumers to dynamic prices for perishable products. As price fluctuates with the changes in time and inventory, a strategic consumer may choose to postpone a purchase in anticipation of lower prices in the future. We analyze a threshold purchasing policy for the strategic consumer, and conduct numerical studies to study its impact on both the strategic consumer's benefits and the seller's revenue. We find that in most cases the policy can benefit both the strategic consumer and the seller. In practice, the seller could encourage consumers waiting by adopting a target price purchasing system.

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Electronic distribution channels' effect on hotel revenue management

Abstract: Even with the variety of distribution channels available, rate and length of stay remain the key factors in revenue management.

Cited by 64 publications

References 11 publications

How economic crisis affects revenue management: the case of the Prague Hilton hotels

How economic crisis affects revenue management: the case of the Prague Hilton hotels

Hotel Yield Management Practices Across Multiple Electronic Distribution Channels

Strategic Consumer Response to Dynamic Pricing of Perishable Products

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