Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman

The major issues that affect a firm's revenue is to get the price right. Price plays an important role since it is one of the strategic marketing variables that have direct impact on sales revenue or financial performance. However, the studies of pricing within the marketing discipline were ver...

Full description

Saved in:

Bibliographic Details
Main Author:	Wan Salman, Wan Ahmad Nasroun
Format:	Thesis
Language:	English
Published:	2010
Subjects:	Public accounting Auditing
Online Access:	https://ir.uitm.edu.my/id/eprint/6045/2/6045.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.6045
record_format	uketd_dc
spelling	my-uitm-ir.60452022-09-27T00:06:32Z Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman 2010 Wan Salman, Wan Ahmad Nasroun Public accounting. Auditing Hospitality industry. Hotels, clubs, restaurants, etc. Food service The major issues that affect a firm's revenue is to get the price right. Price plays an important role since it is one of the strategic marketing variables that have direct impact on sales revenue or financial performance. However, the studies of pricing within the marketing discipline were very few particularly in hotel industry. This study was to ascertain the implications of hotel room pricing strategies adopted by 5 star-rating hotels in Malaysia with regards to their financial performance. Apart from that, this study was also aimed to examine the relationship between hotel pricing strategy, financial performance and external environment as moderating variable. The pricing strategies construct were derived from various articles on pricing in services industry and integrated according to four dimensional measures of cost-based, competitive, differential and psychological pricing strategy. Meanwhile, financial performance was measured by means of average room rate (ARR), occupancy percentage and revenue per available rooms (RevPAR). Samples for this study comprised of 72 hotels (5-star) with 100 rooms and above throughout Malaysia in which hotel manager was selected as a respondent. The statistical analyses used involved Multiple Regression, Hierarchical Regression and Moderated Regression analysis. Results indicated that cost-based pricing and differential pricing have a negative relationship with hotel financial performance, whereas competitive pricing and prestige pricing showed a positive relationship. This supported the notion that, for example; when a hotel that used cost-based pricing increased their room rates, it will lead to decrease in their financial performance or vice versa. Generally, the relationship between pricing strategy and financial performance were supported since the overall model showed that it was significant. Overall, the proper selection of pricing strategy by the hotel managers may lead the organization to their targeted revenue or income. Furthermore, it would also profitable for a hotel organization to implement more than one pricing strategy in their marketing strategy. 2010 Thesis https://ir.uitm.edu.my/id/eprint/6045/ https://ir.uitm.edu.my/id/eprint/6045/2/6045.pdf text en public masters Universiti Teknologi MARA (UiTM) Faculty of Hotel & Tourism Management Mohd Radzi, Salleh
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Mohd Radzi, Salleh
topic	Public accounting Auditing Public accounting Auditing
spellingShingle	Public accounting Auditing Public accounting Auditing Wan Salman, Wan Ahmad Nasroun Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
description	The major issues that affect a firm's revenue is to get the price right. Price plays an important role since it is one of the strategic marketing variables that have direct impact on sales revenue or financial performance. However, the studies of pricing within the marketing discipline were very few particularly in hotel industry. This study was to ascertain the implications of hotel room pricing strategies adopted by 5 star-rating hotels in Malaysia with regards to their financial performance. Apart from that, this study was also aimed to examine the relationship between hotel pricing strategy, financial performance and external environment as moderating variable. The pricing strategies construct were derived from various articles on pricing in services industry and integrated according to four dimensional measures of cost-based, competitive, differential and psychological pricing strategy. Meanwhile, financial performance was measured by means of average room rate (ARR), occupancy percentage and revenue per available rooms (RevPAR). Samples for this study comprised of 72 hotels (5-star) with 100 rooms and above throughout Malaysia in which hotel manager was selected as a respondent. The statistical analyses used involved Multiple Regression, Hierarchical Regression and Moderated Regression analysis. Results indicated that cost-based pricing and differential pricing have a negative relationship with hotel financial performance, whereas competitive pricing and prestige pricing showed a positive relationship. This supported the notion that, for example; when a hotel that used cost-based pricing increased their room rates, it will lead to decrease in their financial performance or vice versa. Generally, the relationship between pricing strategy and financial performance were supported since the overall model showed that it was significant. Overall, the proper selection of pricing strategy by the hotel managers may lead the organization to their targeted revenue or income. Furthermore, it would also profitable for a hotel organization to implement more than one pricing strategy in their marketing strategy.
format	Thesis
qualification_level	Master's degree
author	Wan Salman, Wan Ahmad Nasroun
author_facet	Wan Salman, Wan Ahmad Nasroun
author_sort	Wan Salman, Wan Ahmad Nasroun
title	Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
title_short	Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
title_full	Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
title_fullStr	Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
title_full_unstemmed	Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman
title_sort	pricing strategy and its implication on hotel financial performance / wan ahmad nasroun wan salman
granting_institution	Universiti Teknologi MARA (UiTM)
granting_department	Faculty of Hotel & Tourism Management
publishDate	2010
url	https://ir.uitm.edu.my/id/eprint/6045/2/6045.pdf
_version_	1783733138100322304

Pricing strategy and its implication on hotel financial performance / Wan Ahmad Nasroun Wan Salman

Similar Items