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Journal of Revenue and Pricing Management

, Volume 17, Issue 4, pp 291–295 | Cite as

Revenue management in luxury hotels

  • Sheryl E. KimesEmail author
  • Jeannette Ho
Practice Article

Abstract

In this paper, we show that the application of revenue management (RM) in luxury hotels is different because of the role that price and service delivery play in driving the luxury hotel customer experience. Luxury consumers often take price as a cue for quality and luxury, and given that luxury consumers are less price sensitive, the focus becomes more one of providing the experiences that they desire and expect. We illustrate our discussion with examples from the luxury brands operated by AccorHotels.

Keywords

hotels revenue management luxury implementation customer experience 

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Copyright information

© Macmillan Publishers Ltd., part of Springer Nature 2017

Authors and Affiliations

  1. 1.Operations Management, School of Hotel AdministrationCornell University SC Johnson College of BusinessIthacaUSA
  2. 2.AccorHotels Luxury DivisionRaffles Brand & Strategic RelationshipsSingaporeSingapore

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