Flexible Payment Schemes in Hotel Business

• Main Authors: DING, Qing, Dong, Ciwei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: Hospitality Administration and Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3081
• Institution: Singapore Management University

This paper introduces a flexible payment scheme in the hotel business. When a customer makes a reservation for a hotel room, the hotel offers a payment discount at check-out time if the customer agrees to immediately make a nonrefundable down payment. This scheme protects the hotel from customer can...