A paradigm shift in revenue management? The new landscape of hotel cancellation policies

Arash Riasi (), Zvi Schwartz () and Chih-Chien Chen ()
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Arash Riasi: University of Delaware
Zvi Schwartz: University of Delaware
Chih-Chien Chen: University of Nevada Las Vegas

Journal of Revenue and Pricing Management, 2019, vol. 18, issue 6, No 4, 434-440

Abstract: Abstract This study provides empirical evidence on how hotel cancellation policies are changing in recent years. The findings demonstrate that while hotels are experimenting with stricter cancellation windows, their cancellation penalties do not appear to become stricter. We discuss this counterintuitive discrepancy, explaining the rational with theoretical models of price discrimination and empirical observations of consumer behaviour, both within the framework of hotel revenue management practices.

Keywords: Cancellation policies; Cancellation window; Cancellation penalty; Hotel industry; Revenue management (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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DOI: 10.1057/s41272-019-00189-3

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