Practical Pricing for the Hotel Industry

Warren H. Lieberman

Chapter 13 in Revenue Management, 2011, pp 180-191 from Palgrave Macmillan

Abstract: Abstract As illustrated in the following example, pricing decisions can exert extraordinary, but easily overlooked leverage on a hotel’s profitability. Consider a hotel with 300 rooms; we’ll call it Veritec Lodge. Veritec Lodge generally has an annual occupancy percentage of 65 percent. As shown in Table 13.1, small increases in occupancy percentage have a relatively modest effect on the hotel’s annual revenue; increasing the occupancy percentage from 65 percent to 66 percent, an increase of almost 1100 room nights, results in a revenue gain of about 1.5 percent.

Keywords: Discount Price; Price Decision; Loyalty Program; Revenue Management; Customer Segment (search for similar items in EconPapers)
Date: 2011
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DOI: 10.1057/9780230294776_14

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