Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability

(1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most effective and least appropriate...

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Main Authors: Luís Lima Santos, Conceição Gomes, Cátia Malheiros, Catarina Crespo, Carla Bento
Format: Article
Language:English
Published: MDPI AG 2024-11-01
Series:International Journal of Financial Studies
Subjects:
Online Access:https://www.mdpi.com/2227-7072/12/4/112
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author Luís Lima Santos
Conceição Gomes
Cátia Malheiros
Catarina Crespo
Carla Bento
author_facet Luís Lima Santos
Conceição Gomes
Cátia Malheiros
Catarina Crespo
Carla Bento
author_sort Luís Lima Santos
collection DOAJ
description (1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most effective and least appropriate RM practices for use in periods of low demand and crises, reflecting the financial sustainability perspective. The theoretical framework of this study focuses on the main RM practices, grouping them into price and non-price strategies. (2) Methods: A quantitative methodology was employed, collecting information from Portuguese hotels through an online questionnaire, and statistical analysis using Mann–Whitney and Chi-square tests was conducted. (3) Results: Hotels offered discounts during the pandemic, but room rates were reduced during the recovery period. These findings also revealed that commonly used techniques were the best available rate (BAR) and rate fences, particularly during the pandemic. Quality, brand image, strategic partnerships, and marketing actions are recognised as essential. However, loyalty programs, length of stay (LOS) control, rate parity, and bundled services are not commonly implemented despite their importance during periods of low demand. Larger hotels, five-star hotels, and members of international chains applied more RM practices than smaller four-star independent hotels. (4) Originality: This study provides original and valuable insights into increasing hotel revenues and occupancy rates during future periods of low demand, which benefit financial sustainability.
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spelling doaj-art-a2be6e0341ee4ab1984733b91608fa142025-08-20T02:57:13ZengMDPI AGInternational Journal of Financial Studies2227-70722024-11-0112411210.3390/ijfs12040112Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial SustainabilityLuís Lima Santos0Conceição Gomes1Cátia Malheiros2Catarina Crespo3Carla Bento4CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, PortugalCiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, PortugalCiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, PortugalCiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, PortugalCiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal(1) Background: Facing the challenges of a post-pandemic period and the Ukraine War and recognising the gap in scientific research on the application of revenue management (RM) in the Portuguese hotel industry, the main objective of this study is to identify the most effective and least appropriate RM practices for use in periods of low demand and crises, reflecting the financial sustainability perspective. The theoretical framework of this study focuses on the main RM practices, grouping them into price and non-price strategies. (2) Methods: A quantitative methodology was employed, collecting information from Portuguese hotels through an online questionnaire, and statistical analysis using Mann–Whitney and Chi-square tests was conducted. (3) Results: Hotels offered discounts during the pandemic, but room rates were reduced during the recovery period. These findings also revealed that commonly used techniques were the best available rate (BAR) and rate fences, particularly during the pandemic. Quality, brand image, strategic partnerships, and marketing actions are recognised as essential. However, loyalty programs, length of stay (LOS) control, rate parity, and bundled services are not commonly implemented despite their importance during periods of low demand. Larger hotels, five-star hotels, and members of international chains applied more RM practices than smaller four-star independent hotels. (4) Originality: This study provides original and valuable insights into increasing hotel revenues and occupancy rates during future periods of low demand, which benefit financial sustainability.https://www.mdpi.com/2227-7072/12/4/112hotelrevenue managementcrisesPortugalfinancial sustainability
spellingShingle Luís Lima Santos
Conceição Gomes
Cátia Malheiros
Catarina Crespo
Carla Bento
Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
International Journal of Financial Studies
hotel
revenue management
crises
Portugal
financial sustainability
title Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
title_full Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
title_fullStr Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
title_full_unstemmed Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
title_short Factors Influencing Hotel Revenue Management in Times of Crisis: Towards Financial Sustainability
title_sort factors influencing hotel revenue management in times of crisis towards financial sustainability
topic hotel
revenue management
crises
Portugal
financial sustainability
url https://www.mdpi.com/2227-7072/12/4/112
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AT catiamalheiros factorsinfluencinghotelrevenuemanagementintimesofcrisistowardsfinancialsustainability
AT catarinacrespo factorsinfluencinghotelrevenuemanagementintimesofcrisistowardsfinancialsustainability
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