How economic crisis affects revenue management: the case of the Prague Hilton hotels

Abstract

This study explores revenue management practices in two Prague hotels throughout the past years of economic crisis. The purpose of the research was to inform hospitality managers and educators about revenue management practices in central Europe's emerging and challenging hospitality market. Data were collected through participant observation, accessing company documents, and by soliciting inputs from key informants. This study identifies the necessity for careful pricing strategies and to resist discounting. Rate dilution and price wars in the market should be avoided in order to prepare for times of recovery. To maximise revenue, forecasting should be accurate, group contract conditions should be monitored, and over-sales versus spoilage factors balanced. Strategies aimed at both direct and indirect channels should be aligned to maximise value and cost-effectiveness.