Uncovering the Relationship Between Revenue Management and Hotel Loyalty Programs

Document Type

Article

Publication Date

6-21-2021

Publication Title

Journal of Revenue and Pricing Management

First page number:

1

Last page number:

15

Abstract

This study investigates the underexplored relationship between revenue management and hotel loyalty programs. Results from a focus group and personal interviews with industry experts reveal that revenue management uses loyalty programs primarily as a tool to track and gather data on the customer, and revenue managers focus more on Average Daily Rate (ADR) than on total guest spend. Additionally, revenue managers are misinformed about the loyalty concept and confuse the connections between transactional, attitudinal, and true loyalty. Suggestions for future research include the investigation of the topic further by conducting a study using quantitative measures and analyses.

Keywords

Customer loyalty; Dynamic pricing; Grounded theory; Loyalty programs; Revenue management

Disciplines

Hospitality Administration and Management

Language

English

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