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Drivers, barriers, and challenges in NRevPAR and RevPAC adoption – Towards a revenue management adoption scale

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posted on 2025-02-24, 05:43 authored by Huey Chern Boo, Detlev Remy, Kuan-Huei LeeKuan-Huei Lee

The prevalence of online distribution channels, empowered consumers, shrinking profit margins, and progression toward personalized pricing necessitate new revenue management performance measures. NRevPAR and RevPAC emerge as two promising metrics. This study analyzed data from the chain and independent hotel operators to unearth the challenges and influencing factors of adopting these metrics. Using a modified Technology-Organization-Environment framework, our findings show that the primary motivation stems from the direct relative advantage. However, the absence of industry-wide standards for benchmarking poses a significant impediment. The compatibility factor was only indirectly substantiated. Within the organizational context, lack of top management support is the predominant barrier while resource constraints pose substantial challenges. Notably, this study reveals the significance of network externality in the hospitality context, a novel contribution to literature. The extracted texts lay the groundwork for scale development, and the findings are important for a comparative study in the post-COVID-19 situation.

History

Journal/Conference/Book title

International Journal of Hospitality Management

Publication date

2025-01-30

Version

  • Published

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