Positive feedback from customer reviews: the self-enhancement effect
Positive feedback from customer reviews: the self-enhancement effect
Proper pricing strategy is a key component in hotel revenue maximization but determining the right room rate is not an easy task. Although many advanced revenue management systems have been introduced for hoteliers to optimize room rates and inventory allocation based on expected demand, hoteliers keep adjusting their expectations and pricing based on various external factors. Using the theory of performance feedback, this study attempts to analyze the role of positive customer review feedback on hoteliers’ pricing decisions in cases where hoteliers find that their actual financial performance is lower than expectation. The quantitative analysis of 63,492 US properties in monthly observations found that positive customer reviews moderate the relationship between negative RevPAR performance feedback and pricing decisions. The findings of this study add valuable insights to the debate regarding the role of customer reviews in the hospitality industry.
Syrigos, Evangelos
b1c15e33-35b2-4c6a-ba96-02938a9b5174
Fouskas, Konstantinos
37723ed8-9b71-42f2-a6d1-2dbfb9f19929
Franco, Stefano
eda09d0a-4a03-4981-9474-7e4d9531a9a8
Heo, Cindy
a27ff3aa-72bc-44b4-8f80-b231af26a3ad
1 August 2022
Syrigos, Evangelos
b1c15e33-35b2-4c6a-ba96-02938a9b5174
Fouskas, Konstantinos
37723ed8-9b71-42f2-a6d1-2dbfb9f19929
Franco, Stefano
eda09d0a-4a03-4981-9474-7e4d9531a9a8
Heo, Cindy
a27ff3aa-72bc-44b4-8f80-b231af26a3ad
Syrigos, Evangelos, Fouskas, Konstantinos, Franco, Stefano and Heo, Cindy
(2022)
Positive feedback from customer reviews: the self-enhancement effect.
Academy of Management Proceedings, 2022 (1).
(doi:10.5465/AMBPP.2022.14360abstract).
Abstract
Proper pricing strategy is a key component in hotel revenue maximization but determining the right room rate is not an easy task. Although many advanced revenue management systems have been introduced for hoteliers to optimize room rates and inventory allocation based on expected demand, hoteliers keep adjusting their expectations and pricing based on various external factors. Using the theory of performance feedback, this study attempts to analyze the role of positive customer review feedback on hoteliers’ pricing decisions in cases where hoteliers find that their actual financial performance is lower than expectation. The quantitative analysis of 63,492 US properties in monthly observations found that positive customer reviews moderate the relationship between negative RevPAR performance feedback and pricing decisions. The findings of this study add valuable insights to the debate regarding the role of customer reviews in the hospitality industry.
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e-pub ahead of print date: 6 July 2022
Published date: 1 August 2022
Identifiers
Local EPrints ID: 496336
URI: http://eprints.soton.ac.uk/id/eprint/496336
ISSN: 2151-6561
PURE UUID: 31432d21-d5f4-4dd8-8292-87821602bd6c
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Date deposited: 12 Dec 2024 17:31
Last modified: 12 Dec 2024 17:31
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Contributors
Author:
Evangelos Syrigos
Author:
Konstantinos Fouskas
Author:
Stefano Franco
Author:
Cindy Heo
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