A Meta-Analysis on Revenue Management Essay

Words: 3939
Pages: 16

A Meta-analysis on Revenue Management
BBA 7 – G1 Yvonne LIU 302492 Timothy MA 222747

2013-1

Revenue and Pricing Management

Statement of authorship

I certify that this assignment is my own work and contains no material which has been submitted as part of an assignment in any institute college or university. Moreover, to the best of my knowledge and belief, it contains no material previously published or written by another person, except where due reference is made in the text of the assignment.

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Table of Content

1. Introduction……………………………………………………………………4 2. Analysis the future developments of RM………………………………...5 3.
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Choi and Mattila (2004) similarly concur that revenue management in hotels has effects on the relation between the customers and the firm. On the contrary, they found out that revenue management in hotels may not affect the perception of the customers, and ultimately their loyalty, when information is provided to these customers at the appropriate time, such as during the reservation process. This contrasts the common belief that varied pricing practiced by hotels results in reduced perception of fairness among their clients. The short-term nature of the profits by hotels from revenue management can be explained in terms of the unfairness that the customers perceive with regard to these practices. Similarly, Choi and Mattila (2004) reiterate the concept that hotels should shift towards considering the profitability of revenue management as a long-term strategy. The research concludes that practitioners of hotel revenue management need not be weary of the critics of the practice

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regarding the viewpoints of fairness to customers. They have provided ways for mitigating this issue through offering information about pricing to the customers during reservation time. Perceptions of unfairness may arise out of revenue management practice by hotels but appropriate measures ought to be taken to avert reduced customer loyalty out of dissatisfaction. Choi and