Dynamics of pricing and non-pricing strategies, revenue management performance and competitive advantage in hotel industry

Abstract

This research attempts to establish linkages between the dimensions of pricing and non-pricing strategies adopted in hotels in Qatar on the revenue management performance and the gaining of the competitive advantage in business. Nine of the prominently used pricing strategies and four of the non-pricing strategies commonly used in hotel industries have been considered. The research methodology uses interpretivist paradigm using SEM to test the 14 hypotheses with a sample size of 210 managers chosen from 20 five star hotels. Results indicated that hotels should closely monitor demand based pricing, optional product pricing, promotional pricing, and psychological pricing among pricing strategies and length of stay control in non-pricing strategies, as they have a significant relationship with revenue management performance which in turn can provide competitive advantage in business as revealed through the hypothesis testing. Implications have been drawn to benefit the strategic managers to enhance the revenue management performance.