The Impact of Discounting Room Rates on In-House Restaurant Sales

Kevin Stephen Murphy, University of Central Florida
Kelly J. Semrad, University of Central Florida
Elizabeth Yost, University of Central Florida


This study investigates whether discounting hotel room rates during low seasons of demand influences in-house hotel restaurant sales in a positive way. A linear regression function was utilized to assess the relationship between discounting room rates and the hotel's in-house restaurant sales. The model summary provided results indicating that the discounting of room rates during the low season did not significantly influence in-house restaurant sales. The value of this study lies in the empirical results that may provide guidance to the revenue management practices of hotel managers.