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1 – 10 of over 8000Albert A. Barreda, Sandra Zubieta, Han Chen, Marina Cassilha and Yoshimasa Kageyama
This study aims to examine the impact of a mega-sporting event “2014 FIFA World Cup” on hotel pricing strategies and performance.
Abstract
Purpose
This study aims to examine the impact of a mega-sporting event “2014 FIFA World Cup” on hotel pricing strategies and performance.
Design/methodology/approach
The present project examines the host regions’ response to the 2014 FIFA World Cup which was established by the variance in the main hotel key performance indexes: occupancy, average daily rate, revenue per available room (RevPAR) and supply. Using data gathered from STR, this research distinctly shows how the Brazilian host regions reacted to the World Cup.
Findings
Results suggest that the key performance indicators of Brazil’s lodging sector reacted differently to the World Cup. Although all hosting cities experienced significant RevPAR growth because of the increase in hotel room rates during the event, the supply and occupancy performed differed from each city.
Research limitations/implications
Research is limited to the case of hotel performance at the country level for mega-events. The study focused on the reaction of revenue managers in the Latin America context. Other contexts may generate different results.
Practical implications
The study helps revenue managers to examine how the FIFA World Cup travel demand affected pricing strategies and revenue management practices in the Brazilian hotel sector in areas undergoing seasonal growths in overnight tourism. This study serves to inform hoteliers and practitioners about revenue management pricing strategies to improve hotel performance during mega-sporting events.
Social implications
This study reveals that the benefits brought by a mega-event are not always translated into strong hotel revenue performance. This study highlights an important but understudied research area of revenue management pricing strategies and the effect of mega-sporting events in the hotel sector. This study contributes to the literature as one of the few investigations to benefit hotel pricing strategies and overall revenue performance.
Originality/value
This study is one of the few studies about exploring the reaction of revenue managers during the execution of a mega-sporting event. The value of the present study lies in the fact that the authors extend previous studies examining the impact of the most important sporting event in the hotel industry at the country-level perspective. This study serves to inform hoteliers and practitioners about revenue management pricing strategies to improve hotel performance during mega-sporting events.
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The purpose of this study is to examine the influence of key hotel attributes on the room rates of selected hotels in the Greater Gaborone Region, Botswana.
Abstract
Purpose
The purpose of this study is to examine the influence of key hotel attributes on the room rates of selected hotels in the Greater Gaborone Region, Botswana.
Design/methodology/approach
Using hedonic pricing analysis, the effect of eight attributes collected from 80 standard double rooms on Booking.com in the area was analysed using quantile regression.
Findings
The estimated results from quantile regression suggested the importance of the 10th quantile as the best predictor of hotel room price distribution. Overall, the presence of a fitness centre and the availability of meeting and conference facilities were positively significant for the lowest- and premium-priced hotels, respectively.
Research limitations/implications
The study advanced the literature in hedonic pricing models by confirming the applicability of hotel room rate attribute research in unexplored environments.
Practical implications
Hotel managers should be aware of the influence of key attributes, such as meeting and conference space availability and locational factors, on the pricing decisions of room rates in the Greater Gaborone Region. The study also presented opportunities for business-to-business marketing between hotel and tour operators in the region.
Originality/value
The study is one of the few that uses quantile regression in the hedonic pricing analysis of hotel room rates.
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Sameer Mathur and Ashish Dubey
This paper identifies and models the effect of eight attributes that influence hotel room rents in India. These attributes are conceptually grouped into three factors: (1) site…
Abstract
This paper identifies and models the effect of eight attributes that influence hotel room rents in India. These attributes are conceptually grouped into three factors: (1) site factors including the presence or absence of a “swimming pool,” “free breakfast,” and the “hotel capacity”; (2) situational factors including, “distance from the airport,” “weekend/weekday,” “city population,” “cost of living”; and (3) a reputation factor indicated by “star rating.” Our regression model uses secondary data collected from a hotel booking website for 570 hotels across 18 cities of India. The results indicate that six out of these eight variables namely, presence of swimming pool, free breakfast, hotel capacity, distance from the airport, city population, and hotel star rating have a significant impact on hotel room rents in India.
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Toni Repetti, Susan Roe and Amy Gregory
The purpose of this study is twofold: to determine hotel customers’ preference among hotel amenities pricing strategies, specifically a bundled, all-inclusive charge in the form…
Abstract
Purpose
The purpose of this study is twofold: to determine hotel customers’ preference among hotel amenities pricing strategies, specifically a bundled, all-inclusive charge in the form of a resort fee, a limited choice resort fee at a lower price or a la carte pricing, and to determine whether hotel customer prefer bundled or partitioned pricing when faced with a mandatory resort fee.
Design/methodology/approach
An online survey of participants aged 18 years and older who had taken an overnight leisure trip in the past six months is conducted. A fixed-choice set conjoint analysis is performed to analyze the 353 usable surveys.
Findings
Results of this conjoint analysis show that 67 per cent of respondents prefer bundled pricing over partitioned pricing. Respondents also show higher utility for no resort fee and paying for amenities based on usage instead of being forced to pay a mandatory resort fee.
Practical implications
Guest preferences for pricing strategies can provide hotel operators with valuable information on how to establish pricing structures. Results suggest that hotel operators could benefit from presenting a bundled price inclusive of room rates and mandatory fees.
Originality/value
This is the only known study that examines mandatory fees in which customers receive additional amenities or services in exchange for an additional surcharge. This study also adds to the literature on pricing research in the hospitality industry.
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Xingbao (Simon) Hu, Yang Yang and Sangwon Park
Online ratings (review valence) have been found to exert a strong influence on hotel room prices. This study aims to systematically synthesize research estimating the impact of…
Abstract
Purpose
Online ratings (review valence) have been found to exert a strong influence on hotel room prices. This study aims to systematically synthesize research estimating the impact of online ratings on room rates using a meta-analytical method.
Design/methodology/approach
From major academic databases, a total of 163 estimates of the effects of online ratings on room rates were coded from 22 studies across different countries through a systematic review of relevant literature. All estimates were converted into elasticity-type effect sizes, and a hierarchical linear meta-regression was used to investigate factors explaining variations in the effect sizes.
Findings
The median elasticity of online ratings on hotel room rates was estimated to be 0.851. Meta-regression results highlighted four categories of factors moderating the size of this elasticity: data characteristics, research settings, variable measures and publication outlet. Among sub-ratings, results revealed value rating and room rating to exert the largest impact on room rates, whereas staff and cleanliness ratings demonstrated non-significant impacts.
Practical implications
This study provides practical implications on the relative importance of different types of online ratings for online reputation and revenue management.
Originality/value
This study represents the first research effort to understand factors moderating the effects of online ratings on hotel room rates based on a quantitative review of the literature. Moreover, this study provides beneficial insights into the specification of empirical hedonic pricing models and data-collection strategies, such as the selection of price variables and choices of model functional forms.
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Conceição Castro, Fernanda A. Ferreira and Flávio Ferreira
The aim of this paper is to analyze and compare the effect of different hotel characteristics and room attributes on room rates of hotels in the cities of Lisbon and Porto, the…
Abstract
Purpose
The aim of this paper is to analyze and compare the effect of different hotel characteristics and room attributes on room rates of hotels in the cities of Lisbon and Porto, the capital and second most important city in Portugal.
Design/methodology/approach
Using the hedonic pricing method, hotel characteristics are decomposed and analyzed, giving us the perception of the impact of each hotel attributes on the room rates and the people’s willingness to pay for this. Ordinary least square regression analysis was applied to the hedonic price model to find which variables could explain differences in the hotel room rates in Lisbon and Porto.
Findings
The results suggest that in Lisbon and in Porto, a number of common characteristics have significant effects on consumer willingness to pay for a stay in a hotel as star rating, consumer rating and the room size. In Porto, the existence of a fitness centre and in Lisbon, the distance to the city centre are also attributes that create a premium in room rates.
Practical implications
The knowledge of the most valued characteristics by consumers is an important tool for hotel managers to define a price strategy. Also important is the knowledge of the attributes that provide more added value for consumers as these should be taken into account in new investment decisions.
Originality/value
This study highlights the implications of the way one defines and measures qualitative hotel characteristics in hedonic pricing. Although the hedonic method has been applied in several studies, to our knowledge, in Portugal, there are few studies applied only to hotel room rates, and there are no studies comparing hotel room rates in different Portuguese cities. Moreover, the research highlights the critical role of a proper definition and measurement of the variables in hedonic pricing in general and the hotel star in particular.
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The purpose of this study is to examine the evolution of revenue management (RM) research’s intellectual structure in hospitality and tourism in an effort to initiate a creative…
Abstract
Purpose
The purpose of this study is to examine the evolution of revenue management (RM) research’s intellectual structure in hospitality and tourism in an effort to initiate a creative discourse for RM scholars.
Design/methodology/approach
Co-citation analysis was used to examine the reference list of 343 articles over a 35-year period (1983-2018). Co-citation analysis focused on subject clustering and source knowledge evolution. Five periods were created to investigate the evolution of the RM field in the hospitality and tourism industry. The paradigm shift approach was adopted to acquire a better understanding of scientific evolution.
Findings
Findings indicated that from a Kuhnian perspective, RM research in hospitality and tourism did not go beyond the normal science phase. There is no current indication of anomalies in the form of conflict or questioning of the existing paradigms in RM research in hospitality and tourism. This might change, as the research in this realm develops further and evolves.
Research limitations/implications
This study identified issues related to research themes that have the potential of moving RM research in hospitality and tourism to the next level, enabling the paradigm shift in this discipline.
Originality/value
This study is instrumental in its outlook on the evolution of RM research’s intellectual structure in hospitality and tourism. In addition, it is the first study that considers the concept of paradigm shift in RM research context in hospitality and tourism.
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Avraam Papastathopoulos, Christos Koritos and Charilaos Mertzanis
For more than 40 years, researchers have examined an exhaustive set of attributes as price determinants in tourism and hospitality. In extending this rich research stream, this…
Abstract
Purpose
For more than 40 years, researchers have examined an exhaustive set of attributes as price determinants in tourism and hospitality. In extending this rich research stream, this study aims to propose and empirically assess a new set of hotel attributes, namely, faith-based attributes that allow tourists to continue following the activities and rituals guided by their religions while on vacation.
Design/methodology/approach
Using the Bayesian quantile regression for the first time in the field of hotel pricing, the hedonic pricing models examine both internal and external faith-based attributes, namely, halal services, which cater to the needs of Muslim tourists, in a sample of 805 hotels across the top three non-Muslim country destinations (Singapore, Thailand and Japan).
Findings
By exploring the effects of faith-based (halal) attributes available in hotels located in the biggest cities of the above-mentioned destinations, this study provides evidence for the significant role of faith-based (halal) attributes in determining hospitality prices.
Practical implications
This study’s findings offer a resource for several implications for tourism and hospitality scholars, practitioners and policymakers, especially within the field of Muslim/halal tourism, to develop action plans and strategies.
Originality/value
This study is the first to introduce a novel set of faith-based hospitality attributes and empirically assess their impact on hospitality price formation. Additionally, it contributes to the hedonic pricing method by being the first to use the Bayesian quantile regression.
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Jinhua Hong, Toni Repetti, Mehmet Erdem and Tony Henthorne
A review of past scholarly work on pricing issues in hospitality has revealed a lack of focus on customers’ demographic profiles. However, research in other disciplines reveals…
Abstract
Purpose
A review of past scholarly work on pricing issues in hospitality has revealed a lack of focus on customers’ demographic profiles. However, research in other disciplines reveals that understanding price perception differences among groups of customers with different demographics, including culture, is an important consideration when offering pricing strategies. The purpose of this paper is to contribute to the body of pricing research by exploring the effect of hotel guests’ demographics on their perception of hotel room prices.
Design/methodology/approach
Through Qualtrics, data were collected from 414 respondents who stayed at a mid-scale hotel within the past 24 months. The respondents’ perceived value (PV), perceived fairness (PF) and willingness to pay (WTP) for hotel rooms were examined with MANOVA and ANOVA tests to determine the effects of customer demographics on these variables.
Findings
Age, gender and marital status showed a significant effect on PV while age, gender and culture significantly affected PF. However, none of these variables significantly affected WTP. The culture of origin and the culture raised-in influenced PV, PF and WTP similarly.
Originality/value
This study reconciles several divergent results from previous studies and extends the scope of others by introducing different scenarios to each of the three dependent variables. To the best of the authors’ knowledge, it is also the first research study on this subject to evaluate more than two cultures and their effects on the independent variables.
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Fei Du, Feng Yang, Liang Liang and Mingming Yang
This study aims to analyze the tradeoff between two potential marketing strategies for service providers, namely, market segmentation on the basis of reservation lead time and…
Abstract
Purpose
This study aims to analyze the tradeoff between two potential marketing strategies for service providers, namely, market segmentation on the basis of reservation lead time and cooperation with third parties.
Design/methodology/approach
This paper proposes an optimization model to describe market segmentation strategy after cooperating with third parties by taking hotels for example.
Findings
The results show that the profitability of adopting two strategies simultaneously is lower than that with market segmentation alone under some cases, which is relevant with attributes of travel agencies, such as switch rate and market share.
Research limitations/implications
This study indicates that cooperation with third parties has a negative impact on profitability of hotels using market segmentation in some cases. However, randomness of demand, customer loyalty and existence of cancellation should be considered in further research.
Practical implications
In an e-commerce era, hotels with market segmentation based on reservation lead time, are not required to cooperate with third parties under a number of situations (e.g. high switch rates and small market sizes of travel agencies). In addition, hotels should revise the segmentation strategy based on the change rate of potential demand of individual customers. Furthermore, hotels should enhance customer loyalty, strengthen cooperation with travel agencies that possess large market shares or small switch rates.
Originality/value
The study preliminarily formulates the optimal market segmentation strategy on the basis of reservation lead time after cooperating with third parties, which contributes to the revenue management.
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