Professional paper
https://doi.org/10.46672/aet.9.2.6
A PERSPECTIVE OF PRICING, PERSONALIZATION AND FAIRNESS IN HOTEL REVENUE MANAGEMENT
Sandra Brborović
orcid.org/0000-0001-6533-3517
; Aspira - Visoka škola za menadžment i dizajn
Abstract
The paper aims to inquire into the evolving practice of Revenue Management in hotel industry, highlighting ethical concerns related to personalized approach, and pricing fairness. The paper proposes relevant strategies to be considered by hotel experts in current turbulent environment, in their efforts to get the right customers and maximize revenues.
Methodology: A literature review consisting of relevant studies, recent hospitality trends and industry reports, is used to summarize the progress and prospects of pricing and responsible principles in the hotel Revenue Management practice.
Findings: The Revenue Management practice has become one of the core survival kits in the hospitality industry for securing revenues, notably spotlighted at current global crisis times. Dynamic pricing, built on price discrimination criteria,
empowered by algorithmic systems, presents a vital hotel RM tool that steadily evolves into custom-made or personalized pricing. In order to reconcile its business goals with volatile and concerned demand, the hotel management is to bring together responsible strategies and pursue valuable and fair standards to its customers. This review proposes the following accountable
strategies: micro-segment pricing, rate fences as per guest choice, sustainability in pricing, price transparency and communication, leveraging RM systems and human decision-making, internal data integrity, and stakeholders’ education.
Value/Conclusion: This viewpoint provides a set of recommendations for the hotel Revenue Management framework, taking into account current economic and social dilemmas, by combining opportunities related to profitability, ethics and sustainability
Keywords
revenue management, hotels, pricing, personalization, ethics, fairness Acta
Hrčak ID:
311469
URI
Publication date:
15.12.2023.
Visits: 332 *