Hospitality industry revenue management performance modelling: uncovering issues associated with inconsistencies in price parity across multiple distribution channels in the US hotel market
by Thomas A. Maier
International Journal of Revenue Management (IJRM), Vol. 5, No. 4, 2011

Abstract: In the hospitality industry today, online global distribution and product pricing are of critical importance in understanding the effectiveness of revenue management objectives and optimisation of top-line revenue performance. This research proposes a new model which tests hotel online global distribution competency using the following variables: reach, content, consistency and price parity (RCO2P). This study investigated the deployed competency of 15 full-service urban market hotels and their online global distribution performance pertaining to RCO2P. Core findings of this study indicated a range of both competency and inconsistency in price parity and reach across multiple distribution channels. Specifically, preferential display sequencing emerged as a significant factor in the reach category among all properties. Only 6 of 15 properties were measured as having optimal reach effectiveness. The price parity index reflected the most situation critical performance among sampled properties.

Online publication date: Tue, 22-Nov-2011

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