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A paradigm shift in revenue management? The new landscape of hotel cancellation policies

Author

Listed:
  • Arash Riasi

    (University of Delaware)

  • Zvi Schwartz

    (University of Delaware)

  • Chih-Chien Chen

    (University of Nevada Las Vegas)

Abstract

This study provides empirical evidence on how hotel cancellation policies are changing in recent years. The findings demonstrate that while hotels are experimenting with stricter cancellation windows, their cancellation penalties do not appear to become stricter. We discuss this counterintuitive discrepancy, explaining the rational with theoretical models of price discrimination and empirical observations of consumer behaviour, both within the framework of hotel revenue management practices.

Suggested Citation

  • Arash Riasi & Zvi Schwartz & Chih-Chien Chen, 2019. "A paradigm shift in revenue management? The new landscape of hotel cancellation policies," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 18(6), pages 434-440, December.
    • Handle: RePEc:pal:jorapm:v:18:y:2019:i:6:d:10.1057_s41272-019-00189-3
    DOI: 10.1057/s41272-019-00189-3
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    References listed on IDEAS

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    1. ChihChien Chen, 2016. "Cancellation policies in the hotel, airline and restaurant industries," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 15(3), pages 270-275, July.
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    Cited by:

    1. Mehmet Altin & Chih-Chien Chen & Arash Riasi & Zvi Schwartz, 2023. "Go moderate! How hotels' cancellation policies affect their financial performance," Tourism Economics, , vol. 29(8), pages 2165-2182, December.
    2. Kedar Pandurang Joshi & Amol Dhaigude, 2021. "Revenue management for homestay with TODIM-integrated EMSR-b," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(2), pages 134-148, April.

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