Revenue management and customer centric marketing — How do they influence travellers' choices?

Relationship or revenue: Potential management conflicts between customer relationship management and hotel revenue management

“…The primary areas of paradox included management goals, management timescales, management assets, performance indicators and management foci. This was mainly due to divergence occurring in their segregated management objectives and in their approaches to achieving their individual goals, which resulted in customerperceived unfairness and a range of potential customer conflicts that have previously been identified in the literature Wirtz et al, 2003;Mathies and Gudergan, 2007). Details about these findings are now expounded and discussed.…”

“…Findings from existing revenue management studies suggest that there are a number of causes for potential customer conflicts. The first of these relates to customer perceptions towards the 'fairness' of revenue management practices (Kimes, 1994;Kimes and Wirtz, 2003;Huang et al, 2005;Choi and Mattila, 2006;Mathies and Gudergan, 2007;Heo and Lee, 2011). Kimes (1994) states that customers may perceive revenue management practice to be unfair if there is a lack of information on transactions and no rationalised pricing decisions are provided, potentially alienating customers.…”

“…Revenue management studies carried out in the hospitality industry have not only endeavoured to harmonise the two practices by identifying areas of customer conflict Noone et al, 2003;Mathies and Gudergan, 2007), but have also recommended a range of functional marketing strategies to reduce these conflicts . In a business-to- * Tel.…”

Improving profitability: A conceptual model of destination-centric revenue management

“…Wu and Li (2011) found support for their hypothesis that CRM can enhance customer lifetime value (CLV), with relationship quality acting as an intermediary variable, thus offering numerical endorsement for the benefits of combining CRM with RM. However, Mathies and Gudergan (2007) warned that combining RM and CRM, with its emphasis on customer loyalty, poses some risks as the two forces are often opposing; merging them must not lead to customer dissatisfaction. This potential hazard was further explored by Wang (2012), whose results emphasize the riskiness of combining CRM and RM practises and highlight the management conflicts that can be created as a result.…”

Trust, fairness and justice in revenue management: Creating value for the consumer

“…Trust is at the heart of Relationship Marketing strategies, however, there would appear to be a potential conflict between the aims and operation of Relationship Marketing/Customer Relationship Management and RM. The essential difference here is the time horizon for revenue maximization with RM focusing on maximizing revenue from each individual transaction and Relationship Marketing focusing on the lifetime revenue per customer (Mathies and Gudergan, 2007).…”