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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.


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© Palgrave Macmillan. Final version published as: 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. Journal of Revenue and Pricing Management, 12(2), 177-200. Reprinted with permission. All rights reserved.