The effect of idiosyncratic price movements on short- and long-run performance of hotels

Kim, Min-Sun; Lee, Seul Ki; Roehl, Wesley S.

doi:10.1016/j.ijhm.2016.04.006

Cited by 20 publications

(15 citation statements)

References 76 publications

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“…The pricing threshold time effect on hotel performance is another factor that revenue managers should consider in the decision-making process. As Kim et al (2016) indicate, active RM has positive short-run results in the hotel market in exchange for poorer performance in the long-run. Therefore, RM pricing decisions can have several extents within the threshold time and all of these need to be considered for immediate and long-term hotel revenue maximization.…”

Section: Discussionmentioning

confidence: 88%

“…The hotel industry is usually defined as a highly competitive market, but the specific sector's differentiation possibilities influence its final effect Abrate and Viglia (2016); Balaguer and Pernías (2013); Becerra et al (2013); Chung (2000); Enz et al (2009); Graf (2011); Kim et al (2014); Kim et al (2016); Lee (2011); Lee (2015); ; Silva (2015); Viglia et al (2016) Source: Prepared by the author.…”

Section: Discussionmentioning

confidence: 99%

“…However, the strategic perspective becomes very important in comparisons between hotel establishments. Kim et al (2016) demonstrate that idiosyncratic price movements along the booking horizon lead to hotel room revenue increases in the short term, but to revenue reductions in the long term.…”

Section: Aims Of the Articlementioning

confidence: 92%

“…This segmentation is directly controlled and managed by the RM department. When making pricing decisions, revenue managers consider factors such as the economic market conditions, events or seasonality (Kim et al, 2016).…”

Section: Internal Segmentationmentioning

confidence: 99%

“…In addition, when other hotel variables are considered at the same time, their proximity to attractions is found to have a positive impact on prices, while hotel size or city centre location, congestion or noise have a negative effect. In the Houston hotel market, Kim et al (2016) identify a city centre location as the only variable affecting hotel location, having a positive impact on hotel performance, while noise and congestion have a negative impact. In terms of seasonality, they find that hotels have a decreasing performance throughout the year.…”

Section: Competitive Demand Effectsmentioning

confidence: 99%

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Revenue management and price optimization techniques in the hotel sector

2018

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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.

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Section: Discussionmentioning

confidence: 88%