Title: Hospitality industry revenue management performance modelling: uncovering issues associated with inconsistencies in price parity across multiple distribution channels in the US hotel market

Authors: Thomas A. Maier

Addresses: School of Hospitality Leadership, DePaul University, Chicago, IL 60604, USA

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.

Keywords: hotel revenue management; online distribution; price parity modelling; internet marketing; hospitality industry; performance modelling; USA; United States; urban market hotels.

DOI: 10.1504/IJRM.2011.043792

International Journal of Revenue Management, 2011 Vol.5 No.4, pp.290 - 307

Published online: 22 Nov 2011 *

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