Technology‐ and human‐intensiveness in room rate‐setting: A study of four styles among Asia‐Pacific hotels

Room rate‐setting is a complex and challenging task that carries many financial and non‐financial consequences for hotels. The extent to which a hotel emphasizes technology and/or human processes defines its rate‐setting style. A survey of 170 hotels in the Asia‐Pacific region reveals that hotels generally practice four major rate‐setting styles. The style varies not only across hotels but also among hotels within the same chain. Importantly, hotels practicing the high technology‐intensive/high human‐intensive style are likely to produce better financial performance than other hotels. Hotels can promote both technology‐ and human‐intensiveness by developing certain organizational traits and cultures. This research contributes toward a deeper understanding of hotel rate‐setting by shedding light on the consequences and motivating factors of different rate‐setting styles.