About this paper
The hotel industry is in a new buying environment that some call "value transparency." To price effectively, hotel revenue managers must understand how consumers use user-generated content in conjunction with price to make hotel purchase decisions. To understand the implications of these dynamics, Kelly McGuire of SAS and Breffni Noone of The Pennsylvania State University conducted a series of studies set in the context of an online hotel purchase. The results shows clearly that today's hotel managers must understand their value proposition from the consumer perspective. Read more to learn what works – and what doesn't – in setting effective pricing strategies.
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