Hotel revenue management and the Internet: The effect of price presentation strategies on customers' willingness to book

Research output: Contribution to journalArticle

87 Scopus citations

Abstract

A decision that is intrinsic to the application of hotel best available rate (BAR) pricing is how to present the BARs for individual nights within a multiple-night stay to prospective hotel guests. We discuss two alternative price presentation strategies, a blended and a nonblended rate approach, and examine their effect on customers' willingness to pay in the context of Internet-based reservation requests. Study findings indicate that a nonblended rate presentation approach generates higher willingness to book ratings than a blended rate presentation approach. Furthermore, when it comes to nonblended rates, familiarity with BAR pricing moderates the effect of rate sequence on customers' willingness to book.

Original languageEnglish (US)
Pages (from-to)272-279
Number of pages8
JournalInternational Journal of Hospitality Management
Volume28
Issue number2
DOIs
StatePublished - Jun 1 2009

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management
  • Strategy and Management

Fingerprint Dive into the research topics of 'Hotel revenue management and the Internet: The effect of price presentation strategies on customers' willingness to book'. Together they form a unique fingerprint.

  • Cite this