Yepari Articles

Hotels compete with each other using both pricing and non-pricing tactics - depending on their circumstances. Pricing tactics adopted by the hotel industry include discounting, value-added packages, and use of opaque distribution channels while non-pricing tactics include quality improvement, leveraging loyalty program, finding additional revenue sources and developing new market segments. (Kimes, 2010; Kimmons, 2006). Kimes (2010) claims that discounting was not to be used to maintain the revenue but to focus instead on marketing programs. It was suggested to use rate-obscurring approach with the emphasis on value-added package. Having said this - in an oligopoly, non-pricing tactics can be more [...]

Wikipedia defines 'Prospect Theory' (developed by Princeton University Professor, Daniel Kahneman and Amos versky in 1979) as 'a behavioral economic theory that describes decisions between alternatives that involve risk, where the probabilities of outcomes are known'. The theory says that people make decisions based on the potential value of losses and gains rather than the final outcome, and that people evaluate these losses and gains using interesting heuristics. People who have made a purchase will be easier to spend a bit more if it is of value to them. Having said this, the hospitality industry can benefit from this theory by [...]