Pricing Behavior on the Web. Luxury Hotels in Germany

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Kurzfassung
• Table of Contents
• List of Figures
• List of Tables
• List of Abbreviations
• Preface
• 1. INTRODUCTION AND INITIAL SITUATION
• 1.1 Research Motivation and Problem Depiction
• 1.2 Significance of the Research and Background of the Research Problem
• 1.3 Study Objectives and Research Questions
• 1.4 Outline of the Thesis
• 2. THEORETICAL AND EMPIRICAL BACKGROUND
• 2.1 Special Characteristics of Hotel Marketing
• 2.2 Distribution Channels of Hotel Rooms
• 2.2.1 Historical Perspective on Electronic Hotel Distribution
• 2.2.2 The Arrival of the Web Commerce
• 2.2.3 Hotel Rooms Distribution on the Web (IDS)
• 2.2.4 Typology of the Internet Distribution System
• 2.2.4.1 Proprietary website
• 2.2.4.2 Branded hotel company CRS website
• 2.2.4.3 Soft hotel brand websites
• 2.2.4.4 Third‐party Internet sites
• 2.2.5 Channels Connectivity and Data Exchange
• 2.2.6 Cost of Distribution on the Web
• 2.3 Pricing of Hotel Rooms
• 2.3.1 Fundamentals of Pricing and Its Levels of Implementation
• 2.3.1.1 Fundamental Approaches to Pricing
• 2.3.1.2 Levels of the Pricing Implementation
• 2.3.2 The Financial Power of Pricing
• 2.3.3 Pricing tactics and Practices
• 2.3.3.1 Differential Room Pricing and Rate Fencing
• 2.3.3.2 Variable Pricing
• 2.3.4 Controversial Concepts in the World of Hotel‐Room Pricing
• 2.3.4.1 Rate Parity
• 2.3.4.2 Rate Integrity
• 2.3.4.3 Best‐Rate Guarantee
• 2.4 Revenue Management

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The purpose of this exploratory study is to investigate the current online pricing practices of luxury hotels in Germany and to explore potential challenges that they face in distributing their rooms on the web.

• The study aims to examine the current online pricing practices of luxury hotels in Germany.
• The current research seeks to explore any potential weaknesses or challenges that luxury hoteliers in Germany could face when using any one of several web‐based distribution channels.
• The study forms an accurate picture of the existing trend by providing some evidence on the current behavior of hotel operators in the luxury hotel sector in Germany.
• The study suggests practical implications and professional recommendations for luxury hotel operators in Germany.
• The study investigates whether room rates are being set consistently across the utilized web‐based distribution channels.

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1 presents an overview of the research problem and its significance for the German luxury hotel market. It also outlines the study's objectives and research questions.
• Chapter 2 provides a comprehensive overview of the theoretical and empirical literature on the topics of hotel distribution, pricing, and revenue management. It also discusses key concepts such as rate parity, rate integrity, and best‐rate guarantee.
• Chapter 3 describes the methodology used for data collection and analysis. The study utilizes a mixed‐methods approach, combining quantitative data from online observations with qualitative data from interviews with hotel revenue management professionals.
• Chapter 4 presents the findings of the research and discusses their implications for the German luxury hotel market.

Schlüsselwörter (Keywords)

The key focus topics of this text are online room pricing, web commerce, Internet Distribution System, luxury city hotels in Germany, revenue management, rate parity, and rate integrity.

Frequently Asked Questions

What are the main online pricing challenges for luxury hotels in Germany?

Key challenges include a lack of rate consistency across channels, the reselling of net rates by third parties, and the difficulty of maintaining a "best-rate guarantee."

Does "rate parity" actually exist in the German luxury hotel market?

The study found that complete rate consistency did not exist, and customers often found better rates on indirect channels than on the hotels' own websites.

How do third-party websites impact hotel pricing control?

Third-party sites often resell net rates to end-customers, leading to a loss of control over final pricing and potentially damaging the hotel's price integrity.

What is "Revenue Management" in the context of this study?

It refers to the strategic setting of rates to optimize revenue and profit while ensuring customer satisfaction across various distribution channels.

What recommendations are given to luxury hotel operators?

Hoteliers should reevaluate their presence on web-based channels, ensure logical pricing practices, and focus on the customer as a focal point to maximize long-term profitability.