How economic crisis affects revenue management: the case of the Prague Hilton hotels [Summary]
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This study explores revenue management practices in two Prague hotels throughout the past years of economic crisis. 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 maximize 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 maximize value and cost-effectiveness.