Developing an integrated revenue management and customer relationship management approach in the hotel industry

Show simple item record Vaeztehrani, A en Modarres, M en Arefkashfi, Seyedsamin en 2015-06-07T23:15:36Z en 2015-03 en
dc.identifier.citation Journal of Revenue and Pricing Management, 2015, 14 (2), pp. 97 - 119 en
dc.identifier.issn 1476-6930 en
dc.identifier.uri en
dc.description.abstract Revenue management (RM) and customer relationship management (CRM) are the standard strategies of many hotels to increase their profitability. Although the objectives and time horizons of RM and CRM are different, they can be considered as complimentary business strategies. However, the integration has received little attention both practically and theoretically. In this study, we develop an approach to jointly make the capacity allocation and overbooking decisions considering CRM strategies over a hotel network. Hotel customers are divided based on their lifetime value into two major groups of occasional and loyal customers. Price discounts and room availability guarantee (RAG) are offered to loyal customers, who are the hotel’s essential source of profit. The main problem is tackled by a stochastic dynamic programming model whose expected value of objective function is approximated by two deterministic linear programming-based algorithms. The computational results indicate that the loyalty programs may lead to decrease in short-term net revenue. However, another analysis is required to decide upon cost-effectiveness of loyalty programs in an extended planning horizon. On the basis of an estimated discount-RAG response function, the cost-effectiveness of different loyalty programs is compared, which shows potential increase in hotel expected net revenue up to 3.5 per cent. The analytical long-term evaluation of loyalty programs introduced is capable of determining the most appropriate loyalty program factors. Moreover, it suggests discount-RAG response function and the level of tightness as sensitive parameters. en
dc.language eng en
dc.publisher Palgrave en
dc.relation.ispartofseries Journal of Revenue and Pricing Management en
dc.rights Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher. Details obtained from en
dc.rights.uri en
dc.title Developing an integrated revenue management and customer relationship management approach in the hotel industry en
dc.type Journal Article en
dc.identifier.doi 10.1057/rpm.2014.22 en
pubs.issue 2 en
pubs.begin-page 97 en
pubs.volume 14 en
dc.rights.holder Copyright: Palgrave en en
pubs.end-page 119 en
pubs.publication-status Published en
dc.rights.accessrights en
pubs.subtype Article en
pubs.elements-id 473870 en
dc.identifier.eissn 1477-657X en
pubs.record-created-at-source-date 2015-01-26 en

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