Faculty & Research
An Evaluation of Guests' Preferred Incentives to Shift Time-variable Demand in Restaurants
| View subscription information. |
Vol 45 No 1
By: Alex M. Susskind Ph.D., Dennis Reynolds Ph.D. and Eriko Tsuchiya
Executive Summary: As airlines and hotels continue to build and refine successful revenue-management strategies, restaurants have recently realized the value that revenue-management planning can bring to the bottom line. To provide an enhanced understanding of how to use revenue management in restaurants, this article first provides a brief overview of revenue management and its strategic levers. Next, it examines and identifies the specific characteristics of restaurant revenue management. It then shows how price- and value-based strategies can be used to enhance revenue by shifting demand from peak or oversold periods to shoulder or low times. Focusing on the use of packaging, pricing, and discounts, the article then tests consumers' perceptions of incentives to dine during off-peak business periods and observe how these perceptions are related to guests' dining behavior. It concludes with a discussion of proposed revenue-management strategies restaurants can use, based on the findings.
Your Comments Please
If this Cornell Hotel and Restaurant Administration Quarterly Article made a positive impact on your management approach or business operations, we welcome your commentary. We would like to post your comments on our website. Submit your comments to mlp1@sha.cornell.edu.
To view the whole article, please click on the link below.
- An Evaluation of Guests' Preferred Incentives to Shift Time-variable Demand in Restaurants By: Alex M. Susskind Ph.D., Dennis Reynolds Ph.D. and Eriko Tsuchiya
| If you have trouble downloading a report, and are able to install software on your computer, try upgrading to the latest version of Adobe Acrobat Reader to see if that allows you to read it. |
Other Reports or Articles You May Find of Interest