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1 – 5 of 5Jinhua 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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State and local governments are considering large increases to the minimum wage. As restaurants employ many individuals paid at or below minimum wage, these changes may affect…
Abstract
Purpose
State and local governments are considering large increases to the minimum wage. As restaurants employ many individuals paid at or below minimum wage, these changes may affect their businesses. The purpose of this study is to evaluate the anticipated effects of minimum wage growth on employment and pricing in US food and beverage operations.
Design/methodology/approach
The study utilizes an experimental design where restaurant owners and managers are presented with scenarios of differing levels of potential minimum wage increases and are asked to anticipate changes to employment and pricing.
Findings
Restaurant owners and managers involved in the study indicate the level of the minimum wage increase will significantly affect changes in pricing and employment levels. Results also show that restaurant demographics such as type of restaurant and average check do not significantly affect the relative change operators anticipate implementing. Specific ways participants plan to make adjustments are also presented.
Originality/value
The anticipated impact of minimum wage increases at the restaurant level is examined, which differs from previous studies that determine the impact at the industry level. This study evaluates large minimum wage increases of up to 100 per cent, which have previously not been studied.
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Women make up approximately 47% of the workforce and 51% of hospitality employees but account for 70% of travel buying decisions. Even with these high statistics, women are still…
Abstract
Purpose
Women make up approximately 47% of the workforce and 51% of hospitality employees but account for 70% of travel buying decisions. Even with these high statistics, women are still underrepresented in many high-level positions. This paper aims to evaluate the financial effects of diversity in top paying management positions within US hospitality companies from 2006 to 2018 and also evaluate the change in female representation from the Great Recession and the #metoo scandal.
Design/methodology/approach
Firm performance and diversity were studied using fixed effect and random effect models due to the panel nature of the data. ANOVAs and t-tests were conducted to determine the change in female representation.
Findings
On average, companies report 5.55 top paying executives and only 0.75 of them are female. Results show that earnings before interest and taxes, and earnings before interest, taxes, depreciation and amortization are both significantly higher with 15–30% diversity and even higher with 30–50% diversity. After the Great Recession, hospitality companies significantly increased the percentage of females in top positions from 11.5 to 14.1%, while resorts increased female representation from 7.5 to 12.2% after the #metoo scandal.
Originality/value
To the best of the author’s knowledge, this is the first known study to evaluate gender diversity in top hospitality executives and not just female representation. This is also the first paper to evaluate the effect of the #metoo scandal on hospitality firms’ percentage of females in top executive positions.
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Jason Tang, Toni Repetti and Carola Raab
Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits…
Abstract
Purpose
Restaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits. One technique to increase revenue is through revenue management practices, but management needs to be aware of their customers’ reactions to these practices prior to implementation. The paper aims to discuss this issue.
Design/methodology/approach
This study utilizes linear regression to determine the impact of select restaurant revenue management practices, customers’ familiarity with revenue management in general and in restaurants specifically, and customers’ demographics on perceived fairness of revenue management practices in casual and fine-dining restaurants.
Findings
Results indicate that customers find certain restaurant revenue management practices, such as charging premium prices on certain days of the week, fair in both casual and fine-dining restaurants, while others are not in either. Non-refundable reservation fees were found to be fair for fine-dining establishments only. Increased familiarity with restaurant revenue management was associated with higher perceptions of fairness for both casual and fine dining. Age was the only demographic studied that affected perceived fairness.
Originality/value
This study is the only known study to simultaneously evaluate the impact of price and duration restaurant revenue management techniques in combination with customer demographics and revenue management familiarity on consumer perceptions of fairness.
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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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