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Higher prices for longer stays | UDaily

Why guest expectations and hotel pricing practices don’t align
During the summer season, as people are booking their summer vacations, they’re deciding how long to stay away. Many believe that by booking a longer hotel stay they will get a “deal.” However, research from the University of Delaware’s Alfred Lerner College of Business and Economics shows that hotels actually increase their pricing for longer stays, despite what their guests may believe.

The paper, “Gap-Alert? Quantity Surcharge Practices vs. Guest Expectations,” co-written by Zvi Schwartz, chairperson for UD’s Department of Hospitality Business Management, Arash Riasi, doctoral Class of 2018, and Xuan Liu, master’s Class of 2018, looks at this gap between consumer expectation and hotel pricing and what that means for vacation-goers. This is the second phase of research on this topic from the authors; they previously studied this gap in an article published in Cornell Hospitality Quarterly.

In this most recent paper, researchers explored further the idea that a gap exists between surcharge practices and guest expectations in U.S. hotels. Riasi, now a credit strategy manager for Marlette Funding, was working toward his doctoral degree in financial services analytics when he decided to focus his studies on the hospitality industry. He partnered with Schwartz and Liu, now at Hilton’s Revenue Management Cluster in China, to work on a continuation of previous research.

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Higher prices for longer stays | UDaily.

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