A paradigm shift in revenue management? The new landscape of hotel cancellation policies
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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.
KeywordsCancellation policies Cancellation window Cancellation penalty Hotel industry Revenue management
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