Best-available-rate Pricing at Hotels: A Study of Customer Perceptions and Reactions

摘要: Variable pricing, or demand-based is a popular revenue management technique by which hotel managers set different nightly rates for the same room based on expected demand. Operational policies and procedures associated with variable pricing may be confusing to customers, especially if they are not familiar practice. Best-available-rate (BAR) an attempt reduce that confusion guarantee guest quoted lowest available rate each night of multiple-night stay. As result, instead paying price room-night, would pay prices night. Understanding customers' perceptions BAR policy can help better apply tools maximize without compromising satisfaction. This study surveyed 153 travelers measure their reactions perception its fairness, acceptability, reasonableness, honesty. We found stay, customers prefer individual (non-blended rates) rather than average per over stay (blended rates). Overall, significantly more fair, acceptable, reasonable, honest blended rates. However, customer non-blended differed between frequent infrequent travelers. Frequent no difference in fairness while perceived favorable. The findings this precisely tailor way give information during reservation process. Respondents preferred rates, so know conceal actual To ensure have positive honesty, should quote such as those accompany guarantees. Managers also close attention implementation policy, poor execution complex variable-pricing could compromise acceptance.