Journal of Revenue and Pricing Management

, Volume 18, Issue 6, pp 434–440 | Cite as

A paradigm shift in revenue management? The new landscape of hotel cancellation policies

  • Arash RiasiEmail author
  • Zvi Schwartz
  • Chih-Chien Chen
Research Article


This study provides empirical evidence on how hotel cancellation policies are changing in recent years. The findings demonstrate that while hotels are experimenting with stricter cancellation windows, their cancellation penalties do not appear to become stricter. We discuss this counterintuitive discrepancy, explaining the rational with theoretical models of price discrimination and empirical observations of consumer behaviour, both within the framework of hotel revenue management practices.


Cancellation policies Cancellation window Cancellation penalty Hotel industry Revenue management 



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Copyright information

© Springer Nature Limited 2019

Authors and Affiliations

  1. 1.Department of Hospitality Business ManagementUniversity of DelawareNewarkUSA
  2. 2.William F. Harrah College of HospitalityUniversity of Nevada Las VegasLas VegasUSA

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