Hotel Revenue Management: Impact of Familiarity and Information on Customer’s Perceptions of Fairness Paramita Suklabaidya*, Anjana Singh** Abstract Hotels theoretically can charge as many different rates or prices as they want, but if customers view the hotel’s rate policies as unfair, they are unlikely to patronize the hotel in future as perception of price fairness play an important role in customer satisfaction and their behavior. Considering the importance of perceived fairness, it becomes essential to understand the major factors infuencing customer’s fairness perception of RM pricing. The purpose of this study is to determine customer perceptions of fairness concerning pricing policies charged by the hotel industry and to examine how familiarity and Information approach in pricing policies affect customer perceptions of fairness. The study was conducted in a Hospitality context (e.g. Booking and staying in fve star hotel) in order to examine the effect of Familiarity and Information on customer perceptions of price fairness. A quantitative approach was used to measure respondents’ level of knowledge and impact of information and the current study conducted a survey with scenario based situations. The research also used Qualitative primary research through structured open ended interviews to discuss in detail related to differential pricing strategies. The interviews were conducted with Revenue Managers/ General Managers from a spectrum of hotels in India. The research indicates that the high levels of transparency and information will acceptrules of variable pricing, and the benefts and problems associated with the practice.This research will inform management the strategies that seek ever-fner price discrimination through the use of customer databases and individually targeted price offers. Some customer segments may be amenable to variable pricing and will happily play along with the company’s ‘‘rules’’. Other groups may not understand such rules, and in these circumstances may distrust a company that practices variable pricing. Keywords: Variable Pricing, Differential Pricing, Familiarity, Price, Non-Price Information, Revenue Management INTRODUCTION Hotel leaders have always confronted the challenge of usage of pricing strategies to achieve both income and customer satisfaction. The purpose of this paper is to recognizecurrent practices of price setting in upscale hotels of National Capital Region and approaches adopted by policy makers in price sensitive and aggressive competitive market. This evidence will enable us to analyze the opinions and price pressures that hotel leaders go through in driving value for customers through pricing strategies and to make references accordingly. According to Kimes (2010a) Revenue management pricing is based on two dimensions that is price discrimination and demand based pricing. Revenue management (RM) pricing is special and exceptional due to unconstrained demand and the choice is left to hotel to select customers who are paying most or fulflling the conditions. These conditions give you the seamless opportunity to increase occupancy as well as average room rate. Price discrimination allows hotels to charge multiple prices to different market segments which ultimately lead to improved revenue as compare to one single rate to all customers. This discrimination could be presented with conditions or fences in terms close to arrival or length of stay controls. Marriott Chain International Journal of Hospitality & Tourism Systems Volume 10 Issue 1 June 2017 ISSN: 0947-6250 (Print) ©Copyright IJHTS ® Exclusive Marketing Rights: Publishing India Group * Assistant Professor, IGNOU, New Delhi, India. Email: paramitaz@ignou.ac.in ** Research Scholar, IGNOU, New Delhi, India. Email: anjana.singh@vedatya.ac.in