Strategic price positioning for revenue management

The effects of relative price position and fluctuation on performance

Breffni Noone, Linda Canina, Cathy A. Enz

Research output: Contribution to journalArticle

17 Citations (Scopus)

Abstract

Emerging price optimization models systematically incorporate competitor price information into the derivation of optimal price points. While consideration of competitor pricing at this tactical level is essential to maximizing short-term revenues, the long-term impact of competitive price positioning on revenue performance should not be overlooked. This study examines the effect of two key dimensions of strategic price positioning - relative price position and relative price fluctuation - on the revenue performance of 6998 US hotels over an 11-year period. It finds that revenue performance is strongest for hotels that price higher than the competition and maintain a consistent relative price over time. Implications for revenue management practitioners are discussed.

Original languageEnglish (US)
Pages (from-to)207-220
Number of pages14
JournalJournal of Revenue and Pricing Management
Volume12
Issue number3
DOIs
StatePublished - May 1 2013

Fingerprint

Revenue management
Relative prices
Fluctuations
Revenue
Price positioning
Hotels
Competitors
Pricing
Optimization model
Competitive prices

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Economics and Econometrics
  • Finance

Cite this

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Strategic price positioning for revenue management : The effects of relative price position and fluctuation on performance. / Noone, Breffni; Canina, Linda; Enz, Cathy A.

In: Journal of Revenue and Pricing Management, Vol. 12, No. 3, 01.05.2013, p. 207-220.

Research output: Contribution to journalArticle

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