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Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability

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  • Luís Lima Santos

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

  • Conceição Gomes

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

  • Cátia Malheiros

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

  • Catarina Crespo

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

  • Carla Bento

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

Abstract

(1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most effective and least appropriate RM practices for use in periods of low demand and crises, reflecting the financial sustainability perspective. The theoretical framework of this study focuses on the main RM practices, grouping them into price and non-price strategies. (2) Methods: A quantitative methodology was employed, collecting information from Portuguese hotels through an online questionnaire, and statistical analysis using Mann–Whitney and Chi-square tests was conducted. (3) Results: Hotels offered discounts during the pandemic, but room rates were reduced during the recovery period. These findings also revealed that commonly used techniques were the best available rate (BAR) and rate fences, particularly during the pandemic. Quality, brand image, strategic partnerships, and marketing actions are recognised as essential. However, loyalty programs, length of stay (LOS) control, rate parity, and bundled services are not commonly implemented despite their importance during periods of low demand. Larger hotels, five-star hotels, and members of international chains applied more RM practices than smaller four-star independent hotels. (4) Originality: This study provides original and valuable insights into increasing hotel revenues and occupancy rates during future periods of low demand, which benefit financial sustainability.

Suggested Citation

  • Luís Lima Santos & Conceição Gomes & Cátia Malheiros & Catarina Crespo & Carla Bento, 2024. "Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability," IJFS, MDPI, vol. 12(4), pages 1-19, November.
    • Handle: RePEc:gam:jijfss:v:12:y:2024:i:4:p:112-:d:1520155
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    References listed on IDEAS

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    1. Valentin Grecu & Silviu Nate, 2014. "Managing Sustainability with Eco-Business Intelligence Instruments," Management of Sustainable Development, Sciendo, vol. 6(1), pages 1-6, August.
    2. Wang, Jie & Ritchie, Brent W., 2012. "Understanding accommodation managers’ crisis planning intention: An application of the theory of planned behaviour," Tourism Management, Elsevier, vol. 33(5), pages 1057-1067.
    3. Valentin Grecu & Silviu Nate, 2014. "Managing Sustainability with Eco-Business Intelligence Instruments," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 6(1), pages 1-6, August.
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