Hotel yield management practices across multiple electronic distribution channels

P. O'Connor, Jamie Murphy

Research output: Contribution to journalArticle

138 Citations (Scopus)

Abstract

In the hotel sector, yield management traditionally balances a supply of perishable room nights against demand by manipulating price and time of consumption. While widely accepted, Internetbased distribution channels with different cost structures complicate the process. Hotels must not only manipulate price in response to supply and demand, but must also choose which portfolio of distribution channels to use. This study investigates whether up-market European hotels use three yield management practices: varying room rates with market demand; varying participation in Internet channels with market demand; and differentiating rates on Internet channels in times of high demand. Introducing the concept of a consumer price index for hotel rates, the study found that while one quarter use the first technique, use of the two other practices was considerably lower, suggesting a lack of sophisticated yield management among participants.
Original languageEnglish
Pages (from-to)161-172
JournalInformation Technology & Tourism
Volume10
Issue number2
Publication statusPublished - 2008

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Hotels
electronics
demand
management
Internet
supply
cost structure
consumer price
European market
price index
market
participation
lack
Costs
time

Cite this

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Hotel yield management practices across multiple electronic distribution channels. / O'Connor, P.; Murphy, Jamie.

In: Information Technology & Tourism, Vol. 10, No. 2, 2008, p. 161-172.

Research output: Contribution to journalArticle

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