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Revenue management in luxury hotels

Author

Listed:
  • Sheryl E. Kimes

    (Cornell University SC Johnson College of Business)

  • Jeannette Ho

    (Raffles Brand & Strategic Relationships)

Abstract

In this paper, we show that the application of revenue management (RM) in luxury hotels is different because of the role that price and service delivery play in driving the luxury hotel customer experience. Luxury consumers often take price as a cue for quality and luxury, and given that luxury consumers are less price sensitive, the focus becomes more one of providing the experiences that they desire and expect. We illustrate our discussion with examples from the luxury brands operated by AccorHotels.

Suggested Citation

  • Sheryl E. Kimes & Jeannette Ho, 2018. "Revenue management in luxury hotels," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 291-295, August.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-017-0113-1
    DOI: 10.1057/s41272-017-0113-1
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    References listed on IDEAS

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    1. Verhallen, Theo M. M. & Robben, Henry S. J., 1994. "Scarcity and preference: An experiment on unavailability and product evaluation," Journal of Economic Psychology, Elsevier, vol. 15(2), pages 315-331, June.
    2. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    3. Erickson, Gary M & Johansson, Johny K, 1985. "The Role of Price in Multi-attribute Product Evaluations," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 12(2), pages 195-199, September.
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    Cited by:

    1. Minwoo Lee & Miyoung Jeong & Linda J Shea, 2021. "Length of stay control: Is it a fair inventory management strategy in hotel market?," Tourism Economics, , vol. 27(2), pages 307-327, March.

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