Revenue Management and Yield management: differential pricing in tourism and challenges of price fairness perception

Abstract

The objective of the study: The objective of the present work is to trace the history and an overview of the differential pricing methods used in tourism businesses, reflecting on the perception of the injustice of these methods by consumers.

Methodology/approach: Systematic review of the literature on differential pricing in tourism and price fairness perception.

Originality/Relevance: Despite the relevance of differential prices and the price fairness perception in tourism and behavioral economics, few studies have studied this subject from the consumer's point of view in comparison with a large amount of research in pricing strategy based on the managerial approach, especially in Brazil.

Main results: The results of the literature review indicate a tension between the economic arguments for companies to adopt differential pricing methods - such as Yield Management and Revenue Management - and the reactions of consumers to these prices. Therefore, price fairness is a very relevant variable to be considered in improving research and sector practices.

Theoretical/methodological contributions: The systematic review of the literature of differential pricing and price fairness in tourism contributes to a current panorama on the subject, as well identify gaps and possibilities for future research.

Social/management contributions: It is recommended that tourism managers be aware and includes in their pricing methods the tourist point of view of the final price, as well as for the procedures and policies to reach that price since differential price methods not always can be considered fair.