Revenue management practices and restaurant performance

2012 ◽  
pp. 117-120
Author(s):  
M Noorkhizan ◽  
S Radzi ◽  
F Abdullah ◽  
A Azdel
Keyword(s):  
Revenue Management ◽  
Management Practices

scholarly journals Determinants of revenue management practices and their impacts on the financial performance of hotels in Kenya: a proposed theoretical framework

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Michael Murimi ◽  
Billy Wadongo ◽  
Tom Olielo
Keyword(s):  
Financial Performance ◽  
Revenue Management ◽  
Management Practices ◽  
Theoretical Framework ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Second Stage ◽  
Theoretical Structure ◽  
Proposed Model ◽  
Conceptual Paper

AbstractThis conceptual paper aims at identifying a theoretical framework for the determinants of revenue management (RM) practices and their impacts on the financial performance of hotels. To create this framework, a two-phased process is employed where the first stage involves an explicit examination of the literature related to practices of revenue management and their determinants and to hotel financial performance. The second stage involves an enhancement of the framework. The theoretical structure is developed based on past theoretical explanations, and empirical analysis is conducted in the fields of revenue management. The researchers propose a theoretical framework illustrating how revenue management practices and their determinants affect the financial performance of Kenyan hotels. The use of contingency theory and its justifications and inadequacies among studies on revenue management in hotels is highlighted. The methods highlighted by the reviewed theoretical framework may be utilized to organize revenue management (RM) practices and their determinants for Kenyan hotels. Measurements for the financial performance of hotels are also described. Last, the researchers call for empirical research that authenticates the proposed model using a cross-sectional survey. The present work can inspire scholars and specialists to determine how RM practices and their determinants impact the financial performance of hotels. By assimilating knowledge from numerous disciplines, this paper emphasizes aggregated awareness surrounding the conceptualization of RM, RM practices adopted in hotels, and the financial performance of hotels.

Perceived fairness of revenue management practices in casual and fine-dining restaurants

2019 ◽  
Vol 2 (1) ◽  
pp. 92-108 ◽  
Author(s):  
Jason Tang ◽  
Toni Repetti ◽  
Carola Raab
Keyword(s):  
Revenue Management ◽  
Management Practices ◽  
Perceived Fairness ◽  
Labor Costs ◽  
Content Type ◽  
Profit Margins ◽  
Perceptions Of Fairness ◽  
Management Techniques ◽  
Restaurant Revenue Management ◽  
The Impact

PurposeRestaurants typically have small profit margins and with the pressure of increasing food and labor costs, management is looking to revenue as a way to maintain and drive profits. One technique to increase revenue is through revenue management practices, but management needs to be aware of their customers’ reactions to these practices prior to implementation. The paper aims to discuss this issue.Design/methodology/approachThis study utilizes linear regression to determine the impact of select restaurant revenue management practices, customers’ familiarity with revenue management in general and in restaurants specifically, and customers’ demographics on perceived fairness of revenue management practices in casual and fine-dining restaurants.FindingsResults indicate that customers find certain restaurant revenue management practices, such as charging premium prices on certain days of the week, fair in both casual and fine-dining restaurants, while others are not in either. Non-refundable reservation fees were found to be fair for fine-dining establishments only. Increased familiarity with restaurant revenue management was associated with higher perceptions of fairness for both casual and fine dining. Age was the only demographic studied that affected perceived fairness.Originality/valueThis study is the only known study to simultaneously evaluate the impact of price and duration restaurant revenue management techniques in combination with customer demographics and revenue management familiarity on consumer perceptions of fairness.

Good fences make good revenue: An examination of revenue management practices at peer-to-peer accommodations

2019 ◽  
Vol 26 (7) ◽  
pp. 1108-1128 ◽  
Author(s):  
Yoon Koh ◽  
Amanda Belarmino ◽  
Min Gyung Kim
Keyword(s):  
Revenue Management ◽  
Market Segmentation ◽  
Dynamic Pricing ◽  
Management Practices ◽  
The United States ◽  
Peer To Peer ◽  
Current State ◽  
Daily Data ◽  
Shed Light ◽  
Host Characteristics

While hotel revenue managers utilize tools such as pricing, market segmentation, rate fences, and forecasting to maximize revenue, hosts in peer-to-peer (P2P) accommodations often have limited knowledge and lack the sophisticated pricing tools. Despite online resources for revenue management available, there has yet to be an examination regarding how widely spread these practices are in the P2P accommodation segment. Based on daily best available rates and booking restrictions information for P2P accommodations listed on Airbnb from top 10 cities with highest room inventories in the United States, this study aims to shed light on the current state of revenue management adoption on Airbnb. Utilizing a total of 307,955 Airbnb property’s daily data for 32 months, this study found that there are significant differences in revenue management practices by host characteristics (multi-unit hosts vs. single-unit hosts: Superhosts vs. non-Superhosts) for three revenue management tactics: dynamic pricing, minimum night’s stay, and restricted cancellation, and the hosts practices changes as their experience accumulates.

Application of Revenue Management Practices in Star-Rated Hotels In Kenya

2021 ◽  
pp. 559-574
Author(s):  
Micheal Muremi ◽  
Billy Wadongo
Keyword(s):  
Social Media ◽  
Revenue Management ◽  
Survey Research ◽  
Management Practices ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Revenue Collection ◽  
Operational Costs ◽  
Tools And Techniques ◽  
Media Integration

The study aimed to find the extent of applying revenue management (RM) practices in star-rated hotels in Kenya. Specifically, the study sought to determine RM policies and implementation, application of RM techniques, and the use of RM systems. The study used a quantitative approach and adopted a cross-sectional survey research design. The study targeted 225 revenue managers from all-star-rated hotels in Kenya. The findings revealed that RM is a practice in star-rated hotels, even though not in all hotels. Hotels reported having RM policy and implementation taking place. There was an adoption of RM techniques. A dynamic RM team and the presence of social media integration with RM were identified. The findings revealed that by large, star-rated hotels interact with RM systems and sub-systems on the use of RM systems. Some hotels use either one or a combination of two systems. Furthermost, hotels were found to have automated their revenue collection. It was also revealed that they have adopted integrated RM soft-wares. The hotels were found to have meaningful RM data and information, RM pricing devices, and non-pricing devices. In comparison, information reveals a slightly above average presence of RM application in hotels in Kenya. The empirical evidence presented in this paper reveals that some hotels have not entrenched RM applications in terms of policies and implementation, RM tools and techniques, and their RM systems are lacking. The paper proposes that for full realization and maximization benefits associated with RM practices like predicting the growth of hotels, reducing operational costs, improving yields, and generating revenue, the industry should fully embrace RM applications.

Exploration of revenue management practices – case of an upscale budget hotel chain

2015 ◽  
Vol 27 (8) ◽  
pp. 1791-1813 ◽  
Author(s):  
Rania El Haddad
Keyword(s):  
Revenue Management ◽  
Management Practices ◽  
Single Case ◽  
Future Research ◽  
Single Case Study ◽  
Price Fairness ◽  
Structured Interviews ◽  
Content Type ◽  
Hotel Chain

Purpose – The purpose of this study is to investigate the implementation of revenue management (RM) pricing practices and managers’ perceptions towards this practice in a budget hotel chain and to provide recommendations for improving the adoption of and perception towards this practice. Design/methodology/approach – A single case study method was adopted to conduct an in-depth qualitative research in a hotel organization. In-depth data were collected through semi-structured interviews, observations and documentation. Findings – The research findings indicate that the implementation of revenue management system (RMS): needs to be clearly communicated and made tangible to employees; can impact the profitability of the budget hotel sector and not only mid-scale or luxury sectors; and remains a profit-oriented decision with little consideration for customer outcomes. Research limitations/implications – The findings may not apply to mid-scale or luxury properties, as the results cannot be generalized to other hotel chains in other countries that apply complex pricing structures. Future research might develop multiple case study design to increase the rigor of the research by focusing on themes or patterns uncovered in a single case study. Practical implications – The practical application of the study is twofold: the recommendation to maintain ongoing implementation activities, such as designing operational plans and training programs; the recommendation for a RM pricing strategy that maintains positive price fairness perceptions and results in positive behavioral intentions. Originality/value – This study helps advance our understanding of the characteristics that influence the success of RM implementation in the budget hotel context and provides us with useful insights to design effective dynamic strategies to enhance the implementation process both for the organization and its stakeholders.

Behavioral Consequences of Overbooking Service Capacity

2007 ◽  
Vol 71 (4) ◽  
pp. 36-47 ◽  
Author(s):  
Florian v. Wangenheim ◽  
Tomás Bayón
Keyword(s):  
Revenue Management ◽  
Service Management ◽  
Management Practices ◽  
General Level ◽  
Service Firms ◽  
Negative Consequences ◽  
Positive Events ◽  
Customer Group ◽  
Usage Patterns ◽  
Management Functions

As a consequence of implementing revenue management systems, many service firms (e.g., airlines, hotels, car rentals) systematically overbook capacity, thus striving to maximize the revenue at one particular point in time (i.e., one flight, one night, and one day). The academic literature has not addressed how customers behaviorally respond to overbooking experiences, such as downgrading, denied service, or upgrading. In this article, the authors use the econometric technique of conditional difference-in-differences analysis to study the effect of such incidences on customer usage patterns in an airline context. They find that customers who experience negative consequences of revenue management significantly reduce the amount of their transactions with the airline, whereas upgraded customers exhibit only weak positive responses. The effects of the negative events are stronger for high-value customer groups, whereas significant effects of positive events can be found only for a low-value customer group. The results suggest the need for a stronger focus on customer reactions to revenue management practices. On a more general level, the study contributes to a more interdisciplinary view of service management by demonstrating the need for a closer interaction between management functions (e.g., marketing and operations) in developing and managing concepts of companywide importance.

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