Room rate-setting is a complex and challenging task that carries many financial and non-financial consequences for hotels. The extent to which a hotel emphasizes technology and/or human processes defines its rate-setting style. A survey of 170 hotels in the Asia-Pacific region reveals that hotels generally practice four major rate-setting styles. The style varies not only across hotels but also among hotels within the same chain. Importantly, hotels practicing the high technology-intensive/high human-intensive style are likely to produce better financial performance than other hotels. Hotels can promote both technology- and human-intensiveness by developing certain organizational traits and cultures. This research contributes toward a deeper understanding of hotel rate-setting by shedding light on the consequences and motivating factors of different rate-setting styles.
Lim, L. K. S., & Kimes, S. E. (2013). Technology- and human-intensiveness in room rate-setting: A study of four styles among Asia-Pacific hotels [Electronic version]. Retrieved [insert date], from Cornell University, SHA School site: http://scholarship.sha.cornell.edu/articles/832