{"title":"Competition and coordination in online and offline hotel distribution channels under commission override model","authors":"Peng Liao, Fei Ye, G. Tayi, Xiande Zhao","doi":"10.1504/IJRM.2015.070007","DOIUrl":"https://doi.org/10.1504/IJRM.2015.070007","url":null,"abstract":"We consider a hotel distribution system in which a hotel sells rooms through both its own offline channel and Online-Travel-Agency's (OTA) online channel. In particular, we consider a commonly used allocation scheme in the hotel industry: Commission Override Model (COM), which uses both wholesale contract and consignment contract to sell hotel rooms. In essence, under the wholesale contract OTA 'earns' allotments of rooms after it purchases them; while under the consignment contract the hotel decides on the consignment quantity and retains ownership of the rooms. In contrast to COM, in the traditional Pure Merchant Model (PMM), the revenue from unsold online rooms is permanently lost. We formulate the game model and characterize equilibrium. The results show that COM contract can always improve the hotel's profit in comparison to PMM, and COM is an effective tool to achieve Pareto Improvement with high commission rate and large demand variance.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"193-217"},"PeriodicalIF":0.0,"publicationDate":"2015-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2015.070007","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A logarithmic goal programming approach to develop the utility function for a railway travel","authors":"Goutam Dutta, Priyanko Ghosh, A. Kaul","doi":"10.1504/ijrm.2015.070001","DOIUrl":"https://doi.org/10.1504/ijrm.2015.070001","url":null,"abstract":"Railway passengers are in a dilemma to choose the best train among several alternatives available in a particular route. A relative comparison of competing railways helps the passenger to make an informed choice before the actual travel. In this paper we develop a utility model for a railway travel based on the important attributes. We carry out an analysis on the competing railways for a particular route and calculate the utility score of each train route. The passengers benefit as they are aware of the relative ranking of a particular train on a particular route before they make their choice and the railways benefit as they are able to estimate the market share of each service using a multinomial logit choice model.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"153-164"},"PeriodicalIF":0.0,"publicationDate":"2015-06-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/ijrm.2015.070001","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705907","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Lijian Chen, Dengfeng Sun, Wen-Chyuan Chiang, Shuguang He
{"title":"Purposeful underestimation of demands for the airline seat allocation with incomplete information","authors":"Lijian Chen, Dengfeng Sun, Wen-Chyuan Chiang, Shuguang He","doi":"10.1504/IJRM.2014.067333","DOIUrl":"https://doi.org/10.1504/IJRM.2014.067333","url":null,"abstract":"We study stochastic programming formulations for the origin destination model in airline seat allocation under uncertainty. In particular, we focus on solving the stability issues of the traditional probabilistic model by purposefully underestimating the demands. The stochastic seat allocation models assume at least the possession of the distributional information, which is usually difficult to satisfy in a constantly changing environment. We propose a heuristic that consists of dynamically incorporating available information by solving a sequence of stochastic programming models. We show that the proposed method, named 'seat reservation (SR)', can ease most negative effects of incomplete distributional information and under some restrictive conditions, the SR will yield optimal revenue. The seat reservation method suggests that a revenue management company must (1) obtain timely results using adequately up–to–date computational facilities; (2) be conservative when allocating resources and (3) actively and continually revise previous estimations.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"34"},"PeriodicalIF":0.0,"publicationDate":"2014-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2014.067333","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705784","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Cost management and small restaurant businesses: a complex balance and the role of management","authors":"A. Alonso, Vlad Krajsic","doi":"10.1504/IJRM.2014.067331","DOIUrl":"https://doi.org/10.1504/IJRM.2014.067331","url":null,"abstract":"Given the impact of increases in labour, food, or rent costs, leveraging these and revenues has become very complex for many hospitality businesses. By adopting complexity and role theories, this study examines cost management among small hospitality businesses operating in a large Australian city. Face–to–face, in–depth semi–structured interviews were conducted with owners and managers of 13 small restaurants to gather their understanding and involvement with cost management in their day–to–day business activities. Two of the characteristics that organisations must nowadays contend with according to complexity theory, and that contribute to complexity and paradox were identified: competition, and change. Thus, the role of owners–managers is emphasised, for instance, leveraging rising or already significant labour, food, and rent costs. Overall, the findings demonstrate that in order to address an increasingly complex hospitality industry, a much higher level of preparedness and knowledge, but also creativity in identifying 'hidden' or opportunity costs are required.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"1-19"},"PeriodicalIF":0.0,"publicationDate":"2014-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2014.067331","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705722","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Scaling the house: optimal seating zones for entertainment venues when location of seats affects demand","authors":"N. Phumchusri, J. Swann","doi":"10.1504/IJRM.2014.067334","DOIUrl":"https://doi.org/10.1504/IJRM.2014.067334","url":null,"abstract":"This paper studies the problem of 'Scaling the House', or how venue managers should optimally divide seats into sections with different prices. From previous study, it was found that distance from the stage and distance from the seating row's centre affect demand. We develop a two–dimensional zoning model for the optimal 'Scaling the House' decisions. When demand is not significantly sensitive to distance from the centre, we present an alternative one–dimensional zoning model and show that the optimal seating row (to be priced at a higher price before switching to the next lower price) is the row whose expected revenue when charging at a high price is equal to the expected revenue when charging at a low price. We provide key comparative statics on how model parameters impact the optimal decisions and discuss the important managerial insights on when it is most worthwhile to section seats into two dimensional zones.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"56"},"PeriodicalIF":0.0,"publicationDate":"2014-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2014.067334","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705796","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Seat allocation and pricing in a duopoly in the airline industry","authors":"C. Mazumdar, Parthasarathy Ramachandran","doi":"10.1504/IJRM.2014.067332","DOIUrl":"https://doi.org/10.1504/IJRM.2014.067332","url":null,"abstract":"In this paper, we study the simultaneous problem of seat inventory allocation and pricing in a duopoly market environment in the airline industry. The problem of setting the booking limits and prices when passengers overflow from one airline to the other in response to price is studied. Our analysis indicates that a pure strategy Nash equilibrium is achieved when there are no price differences between the airlines.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"8 1","pages":"20"},"PeriodicalIF":0.0,"publicationDate":"2014-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2014.067332","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705774","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A dynamic pricing approach to electricity prices in the Indian context","authors":"K. Desai, Goutam Dutta","doi":"10.1504/IJRM.2013.059625","DOIUrl":"https://doi.org/10.1504/IJRM.2013.059625","url":null,"abstract":"In this paper, we study the mechanism of dynamic pricing of electricity and its opportunities in the Indian context. We compare the economic efficiency of dynamic pricing vis-a-vis the traditional flat tariff of electricity. We analyse various ways in which dynamic tariff can be introduced in the electricity market and we show the Indian experience in this regard. We consider the state of Maharashtra, in particular, to understand how the time of day (TOD) pricing system has been introduced and how it is more efficient than the flat tariff approach. We develop a mathematical model using pseudo-real data (as per the advice of a renowned sector expert) to show how TOD tariff is more efficient than flat tariff and how real-time pricing (RTP) tariff is associated with the uncertainty of electricity bills. We further emphasise how the dynamic pricing system can be modified to increase its efficiency.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"7 1","pages":"268"},"PeriodicalIF":0.0,"publicationDate":"2013-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2013.059625","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Gender earnings disparity in the US financial sector: 2000-2012","authors":"Shuming Bai, Kai S. Koong, Jason Chen","doi":"10.1504/IJRM.2013.059624","DOIUrl":"https://doi.org/10.1504/IJRM.2013.059624","url":null,"abstract":"Wage disparity in the financial sector between males and females is a known phenomenon that revenue managers have to deal with. Based on government survey data that were analysed, this study confirms that there are several major differences in the salary trends of financial professionals. Up through 2012, every group was reporting pay increments. However, when the dataset was segmented by gender, the findings of the 21 financial occupations showed that every financial job category exhibited evidence of wage disparity over the examined period. In addition, the top five financial occupations with the largest gender wage gap were also the worst jobs in equal pay among all occupations in the USA. Furthermore, the only one financial job that paid nearly the same to women as well as to men fell in the low-skilled and low-paid supportive category that was below the federal poverty threshold in 2012. Female salaries continue to lag behind more during the latter part of the recession period. Finally, using path analysis, it was found that some job occupations have the tendency to generate a wider wage gap over time that is significant and persistent.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"7 1","pages":"244-267"},"PeriodicalIF":0.0,"publicationDate":"2013-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2013.059624","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705652","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"How incentives affect web-based survey response rates of athletic program donors","authors":"Glenda Alvarado, Coy Callison","doi":"10.1504/IJRM.2013.055686","DOIUrl":"https://doi.org/10.1504/IJRM.2013.055686","url":null,"abstract":"Donor-based programs make up a large portion of the funds generated by collegiate sport organisations. Methods of gathering data from this population are of great interest to market researchers and athletic administrators as they seek ways to increase donations and ticket sales. A web-based hybrid survey/experiment including 2051 donors to a collegiate athletic organisation investigated different incentive levels (none, low, medium and high) and incentive types (cash and non-cash prizes) on survey response rates. Results indicated that the inclusion of incentives did not increase survey response rate nor did value of incentive or incentive saliency. Respondents who were offered incentives, however, were quicker in providing the requested information than those respondents not offered incentives for their participation. Discussion details how audiences who provided financial backing to an organisation may perceive incentives as an improper use of donated monies.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"7 1","pages":"155-170"},"PeriodicalIF":0.0,"publicationDate":"2013-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2013.055686","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705233","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Creating revenue via Organisational ‘Brandpression’ Management (OBpM): a marriage of brand management and impression management in professional sport","authors":"Kwame J. A. Agyemang, Antonio S. Williams","doi":"10.1504/IJRM.2013.055687","DOIUrl":"https://doi.org/10.1504/IJRM.2013.055687","url":null,"abstract":"Characterised as activities organisations take to positively influence the image the public has of them, organisational impression management (OIM) is essentially analogous to brand management. To date, however, there is a dearth of literature that links OIM and brand management. Taking this into account, this paper dovetails OIM and brand management literature, detailing a process we refer to as Organisational 'Brandpression' Management (OBpM). Focusing on professional sport, we illustrate how professional sport organisations can proactively employ OBpM, thereby contributing to its ability to maintain support from its current consumer base while also creating positive first impressions and attracting those yet to 'buy in' to the organisation's brand. This, we argue, permits the organisation to leverage their brand as a revenue generator in the marketplace. We identify key areas that professional sport organisations should focus on in order to accomplish this: legitimacy, distinction, consistency, trustworthiness, reputation, affiliation, and employee satisfaction. We conclude with a discussion of future research directions.","PeriodicalId":39519,"journal":{"name":"International Journal of Revenue Management","volume":"7 1","pages":"171-181"},"PeriodicalIF":0.0,"publicationDate":"2013-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJRM.2013.055687","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"66705283","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}