The evolution of competitor data collection in the hotel industry and its application to revenue management and pricing

  • Natalie Haynes
Practice Article

Abstract

This article explores the move towards the collection and processing of hotel competitor set data since the late 1970s. It identifies a shift from using internal metrics to measure the revenue-generating capabilities of a hotel, such as performance against budget, to the use of large amounts of detailed competitor set data processed for hotels by third parties. It analyses the impacts of these changes on the way pricing and revenue decisions are made and suggests that the modern manager may have become over focussed on competitor data, potentially diverting the focus from hospitality-specific success factors such as customer service.

Keywords

competitor data hotels revenue management price decision making 

References

  1. American Hotel and Lodging Association (2014) History of lodging, http://www.ahla.com/content.aspx?id=4072, accessed 30 September 2014.
  2. Butler, J.R., Benudiz, P.P. and Rushmore, S. (1994) Hotel lending in the 1990s: Amateurs beware. The Cornell Hotel and Restaurant Administration Quarterly 35 (6): 39–46.CrossRefGoogle Scholar
  3. Cross, R.G., Higbie, J.A. and Cross, Z.N. (2011) Milestones in the application of analytical pricing and revenue management. Journal of Revenue and Pricing Management 10 (1): 8–18.CrossRefGoogle Scholar
  4. Deroos, J.A. (2010) Hotel management contracts – Past and present. Cornell Hospitality Quarterly 51 (1): 68–80.CrossRefGoogle Scholar
  5. Donaghy, K., McMahon, U. and McDowell, D. (1995) Yield management: An overview. International Journal of Hospitality Management 14 (2): 139–150.CrossRefGoogle Scholar
  6. Haynes, N. and Egan, D. (2014) The future of big data and its impact on unit level operations. Paper presented at EuroCHRIE Dubai, UAE, October. Unpublished.Google Scholar
  7. Hemmington, N. (2007) From service to experience: Understanding and defining the hospitality business. The Service Industries Journal 27 (6): 747–755.CrossRefGoogle Scholar
  8. Higley, J. (2005a) Twenty years and counting: STR fills void for industry. Hotel and Motel Management 260 (16): 75.Google Scholar
  9. Higley, J. (2005b) Rich data collection gives industry key talking points. Hotel and Motel Management 220 (16): 91.Google Scholar
  10. Kim, J. and Canina, L. (2011) Competitive sets for lodging properties. Cornell Hospitality Quarterly 52 (1): 20–34.CrossRefGoogle Scholar
  11. Kimes, S.E. (1989) The basics of yield management. The Cornell Hotel and Restaurant Administration Quarterly 30 (6): 14–19.CrossRefGoogle Scholar
  12. Kimes, S.E. (2011) The future of hotel revenue management. Journal of Revenue and Pricing Management 10 (1): 62–72.CrossRefGoogle Scholar
  13. Malley, M. (1998) STR dissects data differently. Hotel and Motel Management 213 (3): 3.Google Scholar
  14. Office of Fair Trading (2008) Anticipated joint venture between Deloitte and Touche LLP, Smith Travel Research, Inc. and The Bench Ltd, https://assets.digital.cabinet-office.gov.uk/media/555de391e5274a70840000ac/Deloitte.pdf, accessed 21 October 2015.
  15. Orkin, E.B. (1988) Boosting your bottom line with yield management. The Cornell Hotel and Restaurant Administration Quarterly 28 (4): 52.CrossRefGoogle Scholar
  16. Revinate (2015) Informed decision making, https://www.revinate.com/products/reputation, accessed 13 November 2015.
  17. Smith, R. (2009) A personal tribute to Mr. John D. Lesure – My teacher, http://www.hotelnewsnow.com/article/PrintVersion/1785, accessed 21 October 2015.
  18. Smith, R.A. (2010) Reliable hotel industry data: Twenty-five years in the making. Cornell Hospitality Quarterly 51 (4): 454–456.CrossRefGoogle Scholar
  19. Smith, R.A. and Zheng, L. (2011) A look at comp sets: A historical perspective that shapes today’s way of thinking. Cornell Hospitality Quarterly 52 (4): 371–373.CrossRefGoogle Scholar
  20. Whitford, M. (1998) Sale/lease-back agreements gain popularity. Hotel and Motel Management 72 (12): 72–74.Google Scholar
  21. Whittaker, C. (2008) Hotel operator motives in the UK sale and leaseback/management-back transactions. International Journal of Hospitality Management 27 (4): 641–648.CrossRefGoogle Scholar
  22. Williams, F.E. (1977) Decision theory and the innkeeper: An approach for setting hotel reservation policy. Interfaces 7 (4): 18–30.CrossRefGoogle Scholar
  23. Wilson-Wünsch, B., Beausaert, S., Tempelaar, D. and Gijselaers, W. (2015) The making of hospitality managers: The role of knowledge in the development of expertise. Journal of Human Resources in Hospitality and Tourism 14 (2): 153–170.CrossRefGoogle Scholar

Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2016

Authors and Affiliations

  • Natalie Haynes
    • 1
  1. 1.Sheffield Business School, Sheffield Hallam UniversitySheffieldUK

Personalised recommendations