A taxonomy of hotel revenue management implementation strategies

Academic literature has not yet been able to address the many important considerations involved in Revenue management (RM) implementation decisions. Using a qualitative and inductive approach, this paper aims to fill this gap in RM research by examining a range of strategies, such as in‐house, centralized, corporate outsourcing, third‐party outsourcing, and the use of a mixed method. Content analysis of 188 hotel managers’ responses to an open‐ended question embedded within a large‐scale web‐based survey led to their discrete categorization. From this, a taxonomy of RM strategies was created with the goal of identifying and examining various implementation strategies of RM systems and their benefits and drawbacks for the hotel industry. This paper suggests that the implementation choice of RM is a relationship between external factors (e.g., costs associated with implementation choice, uncertainty about markets), internal factors (e.g., resources, organizational capability), and psychosocial factors (e.g., attitudes toward outsourcing, perceived risks).