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Uncovering the relationship between revenue management and hotel loyalty programs

Author

Listed:
  • Melissa Lentz

    (Duetto)

  • Orie Berezan

    (California State University Dominguez Hills)

  • Carola Raab

    (University of Nevada Las Vegas)

Abstract

This study investigates the underexplored relationship between revenue management and hotel loyalty programs. Results from a focus group and personal interviews with industry experts reveal that revenue management uses loyalty programs primarily as a tool to track and gather data on the customer, and revenue managers focus more on Average Daily Rate (ADR) than on total guest spend. Additionally, revenue managers are misinformed about the loyalty concept and confuse the connections between transactional, attitudinal, and true loyalty. Suggestions for future research include the investigation of the topic further by conducting a study using quantitative measures and analyses.

Suggested Citation

  • Melissa Lentz & Orie Berezan & Carola Raab, 2022. "Uncovering the relationship between revenue management and hotel loyalty programs," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(3), pages 306-320, June.
    • Handle: RePEc:pal:jorapm:v:21:y:2022:i:3:d:10.1057_s41272-021-00331-0
    DOI: 10.1057/s41272-021-00331-0
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    References listed on IDEAS

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