The role of disclosure in variable hotel pricing

A cross-cultural comparison of customers' fairness perceptions

Sunmee Choi, Anna S. Mattila

Research output: Contribution to journalArticle

53 Citations (Scopus)

Abstract

An exploration of cross-cultural differences in customers' fairness perceptions of hotel room pricing found that increasing the level of information improved fairness perceptions for respondents in both the United States and Korea. Overall, U.S. consumers seem to perceive variable pricing practices as more fair than do their Korean counterparts. The extent of pricing information offered appears to have a diverse influence across the two culture groups. While only full information had a positive effect on American consumers' fairness perceptions (i.e., what factors affected room rates and how those factors operate), limited information (i.e., just the knowledge that room rates vary and what factors affected room rates) was sufficient to improve fairness perceptions among Korean consumers. These findings have significant managerial implications for global hotel operators practicing revenue management across the two continents.

Original languageEnglish (US)
Pages (from-to)27-35
Number of pages9
JournalCornell Hotel and Restaurant Administration Quarterly
Volume47
Issue number1
DOIs
StatePublished - Feb 1 2006

Fingerprint

Pricing
Hotels
Fairness perceptions
Disclosure
Cross-cultural comparison
comparison
Factors
rate
Revenue management
Cross-cultural differences
Korea
Limited information
Operator
continent
effect

All Science Journal Classification (ASJC) codes

  • Tourism, Leisure and Hospitality Management

Cite this

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