Effect of Dynamic Pricing Policy on Customers’ Perception of Fairness

Kim, Hong-bumm; Chahyeog Ku

This study examined how hotel customers perceived flexible discount pricing of rooms offered to them, and how they reacted to the change in flexible pricing rates. A total of 394 questionnaires were gathered from foreign guests in deluxe hotels, and the findings were as follows: First, regarding the limits and benefits in the cancellation of reservations, guests perceived them as fair, both on the refund policy of full regular rates and the discount policy of what they expected as a benefit in case of inevitable cancellations. Second, group travelers perceived relatively higher fairness on hotel discount rates than FITs, and they also tended to stay longer in their hotels, even extending their original schedules. Finally, hotel marketers must keep in mind that they have to offer quite flexible hotel pricing rates that would be suitable to market principles and competitive behavior, particularly in promoting inbound volume to hotels.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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