search query: @indexterm Hotel and catering industry / total: 391
reference: 190 / 391
| Author: | Quan, D. C. |
| Title: | The Price of a Reservation |
| Journal: | Cornell Hotel and Restaurant Administration Quarterly
2002 : VOL. 43:3, p. 77-86 |
| Index terms: | PRICES HOTEL AND CATERING INDUSTRY ANALYTICAL REVIEW |
| Language: | eng |
| Abstract: | Reservations are widely used in many hospitality and service-related industries to eliminate customers' uncertainty about the price and future availability of the desired service. While such a commitment is desirable for the consumer, it is costly for the issuer. Using hotel reservations as an example, this article shows that for a specific group of price-sensitive customers, reservations are analogous to financial call-option contracts written by the hotel and given to the guests. This analogy allows the use of option-pricing models to determine the price of a reservation. This price should be interpreted as being both the value of a reservation to a guest and the cost incurred by the issuer. |
SCIMA