| Author: | Tian, Sen Simon |
| Title: | An examination of hotel revenue management implementation and practices in China |
| Advisors: | Guillet, Basak Denizci (SHTM) |
| Degree: | DHTM |
| Year: | 2019 |
| Subject: | Hotel management -- China Revenue management -- China Hong Kong Polytechnic University -- Dissertations |
| Department: | School of Hotel and Tourism Management |
| Pages: | viii, 165 pages : color illustrations |
| Language: | English |
| Abstract: | Revenue management has rapidly developed to be a discipline of great importance and value to the hotel industry in recent years. Hotel revenue management has been widely adopted and applied by hotel managers in efforts to maximize and optimize hotel revenue. This study aims to determine the extent to which hotel revenue management concepts are understood and practices are implemented in middle-scale, upscale and luxury hotels in China. The study employs the approach of quantitative research. Through a survey of 635 hotel managers in first, second and other tier cities in China, the study assessed hotel managers' revenue management understanding, determined the differences in revenue management adoption and performance according to hotel related characteristics, examined hotel revenue management practices and ranked the challenges facing hotel revenue management. The findings show a gap in hotel revenue management understanding exists among hotel managers in China and hotel managers need to improve their understanding particularly in revenue management technology, hotel pricing planning, hotel customer value recognition and total hotel revenue management. Significant differences in hotel revenue management adoption were found based on hotel category, chain affiliation and the rank of tier city. Significant differences in hotel revenue management performance were found on the basis of hotel location, chain affiliation, hotel ownership and the rank of tier city. Hotels from first tier cities are more motivated and willing to practice pricing and non-pricing revenue management tools as compared to hotels from second and other tier cities. The findings indicate hotel demand forecasting is of good importance to all hoteliers and the application of statistical forecasting methods to increase forecast accuracy and quality should be further encouraged. OTAs, hotel chain website and hotel own website have been identified as the three most important distribution channels for hotels in China. Most of hotels have dedicated revenue management professionals to monitor and drive revenue management practices. The study also finds that the actual utilization rate of revenue management software is still low though its importance is well acknowledged by the hotel industry in China. The major challenges identified facing hotel revenue management are hotel competition, economic conditions, data analytics, hotel customers and OTAs. The study concludes by offering implications on hotel revenue management. Key implications include the necessity to implement revenue management to maximize hotel food and beverage and other ancillary revenue streams, an effective understanding of hotel customers value in relation to revenue management, proactive deployment of statistical forecasting methods, efficient application of food and beverage revenue management metrics, hotel revenue management human resources development and retention, and satisfaction of the increasing need for revenue management technology investment. Limitations of the study are discussed and recommendations for future research are provided. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 5036.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 1.51 MB | Adobe PDF | View/Open |
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