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

Keywords

hotel, revenue management, discounting, in-house restaurants, bounded rationality

Abstract

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.

Publication Date

2-8-2013

Original Citation

Murphy, K. S., Semrad, K. & Yost, E. (2013). The Impact of Discounting Room Rates on In-house Restaurant Sales, International Journal of Hospitality and Tourism Administration. 14(1), 1-15.

Number of Pages

50-65

Document Type

Paper

Language

English

Source Title

International Journal of Hospitality and Tourism Administration

Volume

14

Issue

1

College

Rosen College of Hospitality Management

Location

Rosen College of Hospitality Management

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