A Comparative Study of the Hotel Industry: Revenue Management Strategy in Canada and the United States

As a result of the perfect storm of 2008-2009 (an intensely competitive environment and extremely harsh economic conditions), hotel properties around the world are more dependent upon revenue management strategies today. Furthermore, hotel revenue management has become a core strategic element for both domestic and international major brand name hotels within today\u27s worldwide lodging industry. Accordingly, this study examined any potential linkage between revenue management resources, management approach, working knowledge of the external environment, and overall revenue management performance of international hotel properties. In this context, revenue management resources speak to management information systems, technology, and human capital. Furthermore, management\u27s approach to how the external environment is taken into consideration is also addressed. Consequently, this study identifies which specific outside variables management considers relevant to the revenue management decision-making process. As such, this study contributes to the discipline of revenue management by addressing the following: (a) How are revenue management decisions for hotel properties influenced by external factors if at all? (b) How significant are internal resources, such as human capital and technology, to the success of hotel revenue management programs and systems as well as overall firm performance in a cross-border, premier international tourist destination? The results of this study help to augment and expand revenue management theory as well as provide hotel managers with a deeper understanding as to how revenue management decisions are influenced by external environmental factors as well as the importance of internal resources on hotel revenue management performance