THE EFFECT OF HOTEL REVENUE MANAGEMENT PRACTICES ON PERCEIVED FAIRNESS, TRUST, SATISFACTION AND CUSTOMER LOYALTY: A STUDY ON DOMESTIC TOURISTS STAYING AT 3 - 5 STAR HOTELS IN THAILAND

Abstract

Revenue management allows hotels to fully maximise their revenue from their relatively fixed perishable inventory. However, from the customers viewpoint, such price discrimination can lead to negative perceptions toward hotels. Hence, it is crucial for hotels to maximise revenue, while at the same time being perceived as fair from the viewpoint of customers. With this idea, this study was conducted to understand the relationship among hotel revenue management practices, perceived fairness, trust, satisfaction, and customer loyalty. This study focused on domestic tourists in Thailand that have stayed at 3 - 5 Star hotels. A quantitative method is used for this study; 417 samples were collected from online questionnaire surveys. The finding of this study emphasised the effect of familiarity with revenue management practices on perceived fairness and trust, while perceived fairness and trust have an impact on satisfaction. Attitudinal loyalty is influenced by perceived fairness and satisfaction. The study also found out that attitudinal loyalty leads to behavioural loyalty. Another highlighted finding is the importance of information adequacy toward all variables of this study.