Exploration of revenue management practices – case of an upscale budget hotel chain

Rania El Haddad (School of Business, Lebanese American University, Beirut, Lebanon)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Publication date: 9 November 2015

Abstract

Purpose

The purpose of this study is to investigate the implementation of revenue management (RM) pricing practices and managers’ perceptions towards this practice in a budget hotel chain and to provide recommendations for improving the adoption of and perception towards this practice.

Design/methodology/approach

A single case study method was adopted to conduct an in-depth qualitative research in a hotel organization. In-depth data were collected through semi-structured interviews, observations and documentation.

Findings

The research findings indicate that the implementation of revenue management system (RMS): needs to be clearly communicated and made tangible to employees; can impact the profitability of the budget hotel sector and not only mid-scale or luxury sectors; and remains a profit-oriented decision with little consideration for customer outcomes.

Research limitations/implications

The findings may not apply to mid-scale or luxury properties, as the results cannot be generalized to other hotel chains in other countries that apply complex pricing structures. Future research might develop multiple case study design to increase the rigor of the research by focusing on themes or patterns uncovered in a single case study.

Practical implications

The practical application of the study is twofold: the recommendation to maintain ongoing implementation activities, such as designing operational plans and training programs; the recommendation for a RM pricing strategy that maintains positive price fairness perceptions and results in positive behavioral intentions.

Originality/value

This study helps advance our understanding of the characteristics that influence the success of RM implementation in the budget hotel context and provides us with useful insights to design effective dynamic strategies to enhance the implementation process both for the organization and its stakeholders.

Keywords

Acknowledgements

The author wishes to extend sincere thanks to the CEO of the participant hotel chain and the managers who took part in the research, for providing the author access to their invaluable data.

Citation

El Haddad, R. (2015), "Exploration of revenue management practices – case of an upscale budget hotel chain", International Journal of Contemporary Hospitality Management, Vol. 27 No. 8, pp. 1791-1813. https://doi.org/10.1108/IJCHM-08-2013-0390

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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