Using revenue management to improve pricing and capacity management in programme management

Pinder, Jonathan P.

doi:10.1057/palgrave.jors.2601801

Cited by 15 publications

(7 citation statements)

References 16 publications

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“…Setting booking limits is another common reservation practice in hotels. It is the activity of determining the number of rooms to be sold at reduced rates in order to reserve some room capacity for later guests who are willing to pay higher rates (Pinder, 2005;Wilson et al, 2006). Another common reservation practice involves applying cancellation policy that addresses cancellation and change restrictions or penalties (Wirtz et al 2003;Pan, 2007;Tse, & Poon, 2011).…”

Section: Reservation Practicesmentioning

confidence: 99%

“…Room pricing practices are the most important practices of capacity management (Pan, 2007;Tse, & Poon, 2011) because of their potential impact on guest satisfaction and loyalty (Pinder, 2005;Richard, 2013;Virvilaite et al, 2009). As a result, hotel managers need to explore the impact of these practices on guest satisfaction and loyalty in order to ensure a successful business in the competitive market of the hotel industry (Virvilaite et al, 2009).…”

Section: Room Pricing Practicesmentioning

confidence: 99%

“…This includes offering discounts for early reservations (Kimes, 2003;Kimes & Wirtz, 2003;Gökşen, 2011) and setting higher rates for last-minute and urgent bookings (Wirtz et al, 2003). Price discrimination is also another common practice, where hotels set different prices/rates for essentially the same accommodation but to different guest segments (Pinder, 2005;Sanghavi, 2005;Tranter et al, 2008). Through offering multiple room rates to different segments, hotels can attract a wide range of guest segments and charge each segment the maximum price they are willing to pay which eventually achieves optimal revenues (Gökşen, 2011).…”

Section: Room Pricing Practicesmentioning

confidence: 99%

“…In other words, when selecting segments/guests, hotels give priority to the most profitable segments/guests over other segments (Gökşen, 2011). For example, hotels tend to choose price-insensitive over price-sensitive guests (Pinder, 2005) and business guests over leisure guests (Sanghavi, 2005). Also, amongst different hotel guests and segments, certain guests are selected first, including: double occupants; longer-stay guests; large travel parties (Albert & Augustina, 2015).…”

Section: Guest Segmentation and Displacementmentioning

confidence: 99%

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Domestic Guests' Perception of Hotel Capacity Management Practices

Mohammad¹

2017

مجلة کلیة السیاحة والفنادق - جامعة مدینة السادات

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In their pursuit of achieving optimal revenues of room capacity, hotels adopt several capacity management practices that can negatively impact guest satisfaction and long-term loyalty. This study aimed to investigate the viewpoint of Egyptian domestic tourists about the practices of room capacity management undertaken by hotels in Egypt. The study focused on four major sets of practices with a total of 18 practices to be examined. A quantitative approach was adopted in this study using questionnaire survey as an instrument for collecting primary data. The sample of this study included 339 participants who were selected using snowball sampling technique to participate in the survey study of this research. The results revealed that all the 18 examined capacity management practices were found to be moderately unacceptable by participants with some significant association between the acceptance of these practices and participants' demographic characteristics and accommodation patterns. The results also showed that the investigated practices were perceived by participants to have a significant negative impact on their both overall satisfaction with hotels and loyalty. The study has also provided some practical recommendations to help hotel managers to avert the negative impacts of these practices on domestic guests' satisfaction and loyalty.

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Section: Reservation Practicesmentioning

confidence: 99%

Section: Room Pricing Practicesmentioning

confidence: 99%

Section: Room Pricing Practicesmentioning

confidence: 99%

Section: Guest Segmentation and Displacementmentioning

confidence: 99%

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Domestic Guests' Perception of Hotel Capacity Management Practices

Mohammad¹

2017

مجلة کلیة السیاحة والفنادق - جامعة مدینة السادات

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“…Value-based pricing technique is another pricing technique according to which companies design and produce services and products at prices that meet the cost target requested by customers (Feldman & Wurst, 2001). Through this technique, companies seek to maximize values provided to customers and reduce production costs to generate profits (Pinder, 2005). Thus, the right implementation of this technique depends on estimating the value of products and services for customers which can be misleading in many circumstances (Feldman & Wurst, 2001).…”

mentioning

confidence: 99%

Evaluating pricing policies applied to Tour Operators and Travel Agents in Egypt

Ammar

2016

Journal of Association of Arab Universities for Tourism and Hos

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Pricing policies and techniques are very important components of the daily operations of services organizations. This is because price is one of the most effective variables that managers can manipulate to encourage or discourage demand for services and products in the short-run (Aziz et al., 2011; Gazopoulou, 2012). In many tourist destinations, tourism intermediaries (including tour operators and travel agents) play an important role in setting the prices that consumers should pay for tourism products and services, particularly in destinations which depend on intermediaries (Buhalis, 2000). Pricing policy is very important for the market success of travel agencies offering products of tourism (Kyurova, 2013). Ineffective implementation of pricing policies can result in a decline in both domestic and international tourism demand and unless the pricing policies are well applied, the tourism industry in the developing countries will lose the economic benefits that could result from tourism (Walpole, Goodwin & Ward, 2008). Therefore, this study aims to explore the pricing policies and techniques applied at tour operators and travel agents in Egypt; as well as to evaluate the efficiency of these policies and techniques. It also aims to provide some recommendations to managers of tour operators and travel agents in Egypt to enhance their performance regarding the integration of policies and techniques. Literature review: Pricing policies and techniques for tourism services: Pricing is the process of setting values at which products and services are to be sold. Thus, pricing is an important process to the successful marketing of products or services (Buhalis, 2000; Hudson, 2008; Reid & Bojanic, 2009). Also, price is a main measure that customers use for judging the value of the product and it strongly in fluencies brand selections among competing organizations (Avlontis & Indounas, 2007). In addition, pricing is the only element of the marketing mix that generates revenues for the company whilst the other elements of the mix represent costs (Lancaster & Reynolds, 2005). According to Kyurova (2013) the pricing policy of an organization refers to the process of setting prices and their fluctuating levels on the short and long term depending on the market conditions. There are several policies/techniques that can be used for pricing tourism services; each of which has its own characteristics, advantages and disadvantages (Buhalis, 2000; Reid & Bojanic, 2009). Pricing strategies/policies of tourist products and services may include strategies such as: skimming pricing strategy; penetration pricing strategy; neutral pricing strategies (Reid & Bojanic, 2009). According to skim pricing strategy, prices of products and services are set very high with high quality to attract rich tourists to achieve high profit out of these certain exclusive segments. However, penetration pricing strategy involves setting prices that attract more customers and gain advantage over its competitors. According to neutral pricing strategy, prices a...

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Optimization and analysis of three-part tariff pricing strategies

Lin

Merdikawati

et al. 2023

OR Spectrum

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Using revenue management to improve pricing and capacity management in programme management

Cited by 15 publications

References 16 publications

Domestic Guests' Perception of Hotel Capacity Management Practices

Domestic Guests' Perception of Hotel Capacity Management Practices

Evaluating pricing policies applied to Tour Operators and Travel Agents in Egypt

Optimization and analysis of three-part tariff pricing strategies

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