Perceived fairness of yield management
1994
Kimes, S.E.
This study, which reports on how customers view yield-management practices in the hotel and airline industries, found practices commonly used in the hotel industry to be perceived as unfair by consumers. To be successful with yield management, hotels must practice it in such a way that customers view transactions as fair. To do this, hotel managers should concentrate on maintaining an acceptable balance between the hotel's profits and the consumer's benefits, for example, by giving discounts in exchange for acceptable restrictions or penalties. Doing so will have a favorable effect on the perceived value of room rates. Hotel managers need to educate their customers about the practice of yield management in the hotel industry. As customers come to view it as usual, they may become more amenable to its use.
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