Game—Gimme a Better Price! A Negotiation Role Play on B2B Pricing in Hotel Revenue Management

Abstract

We present a classroom role play to immerse students in the difficulties of applying value-based pricing principles to the practice of B2B price negotiations at different levels of the hotel value chain. The students assume roles as hotel chain and individual hotel management and as key business clients to the individual hotels. Through strategic and tactical preparations that rely on incremental additions of information on the goals, students prepare themselves to negotiate aspects linked with B2B pricing in a hotel revenue management context and collect points based on their success. After the negotiations, they systematically reflect on their performance vis-à-vis their set intentions. The role play is targeted to be an assignment in master’s level hotel revenue management teaching, but it could be modified to target bachelor’s students or other fields in which value-based pricing is still at its infancy. Based on our experience with running the game in a classroom as well as twice remotely because of COVID-19, it is compatible with both forms of learning and could potentially be extended to an asynchronous online learning environment.