Price Sensitivity Measurement: A Yield Management Approach
The purpose of this paper is to investigate and identify the potential revenue losses, at price points determined by price sensitivity measurement, between actual revenue and potential revenue that can be gained, in terms of yield management. A case study was carried out in a 5 star hotel business i...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2021-06-01
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| Series: | Istanbul Business Research |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/ABABC1A40C0447FA87CCA6EE6EB4BCDE |
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| _version_ | 1850206706760417280 |
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| author | Okan Çolak Levent Koşan |
| author_facet | Okan Çolak Levent Koşan |
| author_sort | Okan Çolak |
| collection | DOAJ |
| description | The purpose of this paper is to investigate and identify the potential revenue losses, at price points determined by price sensitivity measurement, between actual revenue and potential revenue that can be gained, in terms of yield management. A case study was carried out in a 5 star hotel business in Aydın, Turkey. In the study, a questionnaire was conducted to determine price resistance levels, price threshold limits, price sensitivity levels and price perceptions based on the room quality perceptions of the tourists visiting the hotel business. Also, an interview was performed with the accounting manager and the front office manager about the room prices determined. Hotel businesses can determine the optimal price by depending on the quality and value perception of the customers; thus they can use their limited capacity more efficiently so that they can maximize yield. This study showed that the hotel business lost room revenue at all points calculated. The hotel business suffered a potential loss of 35-40% because of the high occupancy rate in July and August. The hotel industry could have room sales revenues much more than the actual room sales revenues, especially if the agency commission expenses can be reduced. |
| format | Article |
| id | doaj-art-d8938bf5123b484997d5bde59c3fb7f7 |
| institution | OA Journals |
| issn | 2630-5488 |
| language | English |
| publishDate | 2021-06-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Istanbul Business Research |
| spelling | doaj-art-d8938bf5123b484997d5bde59c3fb7f72025-08-20T02:10:42ZengIstanbul University PressIstanbul Business Research2630-54882021-06-01501477610.26650/ibr.2021.51.0073123456Price Sensitivity Measurement: A Yield Management ApproachOkan Çolak0https://orcid.org/0000-0001-7104-5853Levent Koşan1https://orcid.org/0000-0001-7630-6354Harran Üniversitesi, Sanliurfa, TurkiyeMersin Üniversitesi, Mersin, TurkiyeThe purpose of this paper is to investigate and identify the potential revenue losses, at price points determined by price sensitivity measurement, between actual revenue and potential revenue that can be gained, in terms of yield management. A case study was carried out in a 5 star hotel business in Aydın, Turkey. In the study, a questionnaire was conducted to determine price resistance levels, price threshold limits, price sensitivity levels and price perceptions based on the room quality perceptions of the tourists visiting the hotel business. Also, an interview was performed with the accounting manager and the front office manager about the room prices determined. Hotel businesses can determine the optimal price by depending on the quality and value perception of the customers; thus they can use their limited capacity more efficiently so that they can maximize yield. This study showed that the hotel business lost room revenue at all points calculated. The hotel business suffered a potential loss of 35-40% because of the high occupancy rate in July and August. The hotel industry could have room sales revenues much more than the actual room sales revenues, especially if the agency commission expenses can be reduced.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/ABABC1A40C0447FA87CCA6EE6EB4BCDEyield managementprice sensitivity measurementwillingness-to-payall inclusive systemhotel management |
| spellingShingle | Okan Çolak Levent Koşan Price Sensitivity Measurement: A Yield Management Approach Istanbul Business Research yield management price sensitivity measurement willingness-to-pay all inclusive system hotel management |
| title | Price Sensitivity Measurement: A Yield Management Approach |
| title_full | Price Sensitivity Measurement: A Yield Management Approach |
| title_fullStr | Price Sensitivity Measurement: A Yield Management Approach |
| title_full_unstemmed | Price Sensitivity Measurement: A Yield Management Approach |
| title_short | Price Sensitivity Measurement: A Yield Management Approach |
| title_sort | price sensitivity measurement a yield management approach |
| topic | yield management price sensitivity measurement willingness-to-pay all inclusive system hotel management |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/ABABC1A40C0447FA87CCA6EE6EB4BCDE |
| work_keys_str_mv | AT okancolak pricesensitivitymeasurementayieldmanagementapproach AT leventkosan pricesensitivitymeasurementayieldmanagementapproach |