IDEAS home Printed from https://ideas.repec.org/a/pal/jorapm/v17y2018i4d10.1057_s41272-017-0133-x.html
   My bibliography  Save this article

Pricing determinants in hotels: The case of luxury, upscale, and mid-scale price segments

Author

Listed:
  • Linden Pohland

    (Rochester Institute of Technology)

  • Muhammet Kesgin

    (Rochester Institute of Technology)

Abstract

Investigating the role of pricing and revenue management is a continual concern as successful businesses rely on sound financial management. This paper examines the pricing objectives, strategy determinants, and strategies employed by hotels while taking managerial concerns into account. The study determines managers’ key pricing concerns and investigates value-informed pricing strategies, making comparisons against the findings of past research to address calls for further investigations. Employing an embedded mixed methods research approach, the study used structured questionnaires and semistructured interviews to gather data from hotel managers influential in price setting. Overall, the study indicates similarities and differences in price determination factors in the hotel industry. Formality in determining prices suggests that pricing is integral to hotel management and hotels employ different pricing strategies depending upon the pricing objectives and strategy determinants. A significant finding is that upscale hotels place high importance on pricing due to intense competition related to their wider product portfolio in comparison to luxury and mid-scale hotels and tend to rely on competition-based pricing. Although exploratory in nature, the results are valuable and provide compelling practical implications and suggestions for future research. Hotel managers can benefit from the wider issues stressed in the paper related to short-term versus long-term, firm-based versus market-based, and relationship versus revenue considerations.

Suggested Citation

  • Linden Pohland & Muhammet Kesgin, 2018. "Pricing determinants in hotels: The case of luxury, upscale, and mid-scale price segments," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 17(4), pages 218-230, August.
    • Handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-017-0133-x
    DOI: 10.1057/s41272-017-0133-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41272-017-0133-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1057/s41272-017-0133-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Indounas, Kostis & Roth, Stefan, 2012. "Antecedents and consequences of strategic price management: An analysis in the New Zealand industrial service context," Australasian marketing journal, Elsevier, vol. 20(2), pages 113-121.
    2. Ruth Mattimoe & Will Seal, 2011. "Pricing in a Service Sector Context: Accounting and Marketing Logics in the Hotel Industry," European Accounting Review, Taylor & Francis Journals, vol. 20(2), pages 355-388.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Claudio A. Piga & Graziano Abrate & Giampaolo Viglia & Francesca Canio, 2022. "How the hospitality industry reacts to COVID-19: structural, managerial and tactical factors," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(5), pages 503-516, October.
    2. Floričić, Tamara & Pavia, Nadia & Kacun, Tara, 2024. "The Importance of the Quality and Sustainability Labels in the Perception of the Luxury Hotel Industry," Journal of Tourism, Sustainability and Well-being, Cinturs - Research Centre for Tourism, Sustainability and Well-being, University of Algarve, vol. 12(3), pages 279-297.
    3. Christen, Tatjana & Hess, Manuel & Grichnik, Dietmar & Wincent, Joakim, 2022. "Value-based pricing in digital platforms: A machine learning approach to signaling beyond core product attributes in cross-platform settings," Journal of Business Research, Elsevier, vol. 152(C), pages 82-92.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amanda Belarmino & Yoon Koh & Hyejo Hailey Shin, 2022. "Blurred lines: comparing room rates, star-ratings, and user-generated contents for full-service and select-service hotels," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 721-742, September.
    2. Yang Yuan & Ning-Kuang Chuang & Amy M. Gregory, 2017. "An evaluation of essential revenue management competencies: similarities and differences between practitioners and educators," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(5), pages 513-526, October.
    3. Sorin-Constantin Deaconu, 2011. "Accounting Treatments Related To Accommodation And Complementary Services Provided By A Hotel Unit In Romania," Revista Tinerilor Economisti (The Young Economists Journal), University of Craiova, Faculty of Economics and Business Administration, vol. 1(17), pages 41-46, November.
    4. Vesa Tiitola & Maria Marek & Tuomas Korhonen & Teemu Laine, 2023. "Enabling value-in-use with digital healthcare technologies: combining service logic and pragmatic constructivism," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 27(3), pages 841-871, September.
    5. Falconer Mitchell & Lars Nielsen & Hanne Nørreklit & Lennart Nørreklit, 2013. "Scoring strategic performance: a pragmatic constructivist approach to strategic performance measurement," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(1), pages 5-34, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:jorapm:v:17:y:2018:i:4:d:10.1057_s41272-017-0133-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.