Customer Loyalty under the Influence of Revenue Management: The Case of Taiwanese Hotel Customers

Yi Hsin Lin, Kuan-cheng Huang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

Revenue management (RM), a common practice for the hotel industry, has been found to be very effective in generating extra revenue. However, prior studies have shown that the implementation of RM may potentially be in conflict with customer loyalty, the basis for long-term profitability. With a view to alleviating the impact of RM on customer loyalty, this study investigates the relationship between customer loyalty and RM knowledge level, and examines the moderating effect of the fairness perception for pricing based on a survey and the related statistical analyses. The findings suggest that hotel operators should facilitate the RM knowledge and the fairness perception of their customers so as to result in a potential win-win situation, in which profit-seeking hotels increase their revenue through better resource utilization, and heterogeneous customers benefit from more diversified services.

Original languageEnglish
Pages (from-to)1374-1388
Number of pages15
JournalAsia Pacific Journal of Tourism Research
Volume20
Issue number12
DOIs
StatePublished - 2 Dec 2015

Keywords

  • customer loyalty
  • fairness perception
  • hotel industry
  • revenue management

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