Off-campus UMass Amherst users: To download campus access theses, please use the following link to log into our proxy server with your UMass Amherst user name and password.

Non-UMass Amherst users: Please talk to your librarian about requesting this thesis through interlibrary loan.

Theses that have an embargo placed on them will not be available to anyone until the embargo expires.

Document Type

Campus Access

Degree Program

Hotel & Tourism Management

Degree Type

Master of Science (M.S.)

Year Degree Awarded

2010

Month Degree Awarded

September

Keywords

Revenue management, Perceived fairness, Reputation

Abstract

In revenue management practice, the issue of perceived fairness is a serious concern, because revenue management applies different prices for basically the same service. The purpose of this study is to examine the effect of hotel revenue management pricing on customers’ perceptions of fairness. Specifically, this study explores whether framing revenue management pricing as discounts rather than surcharges would significantly enhance customers’ perceived fairness. In addition to framing, this study investigates whether customers’ perceived fairness is affected by the fencing condition customers are in. Furthermore, most importantly, this study proposes that such framing and fencing condition effects are moderated by a hotel’s reputation with a revenue management pricing practice. This study found that framing and fencing condition had a significant effect on customers’ fairness perception, respectively. In addition, this study found that reputation moderated the effect of framing on perceived fairness. When the hotel had a poor reputation, framing as a discount rather than framing as a surcharge considerably increased customers’ perceived fairness. When the hotel had a good reputation, however, there was no significant difference between priced framed as a discount and a surcharge. This study supports hotel managers to understand how customers perceive fairness in revenue management practices and also provides hotel managers with broad acceptance levels of the tested revenue management pricing mechanisms.

First Advisor

Miyoung Jeong

Share

COinS