Research in Hospitality Management 2017, 7(1): 65–73 Copyright © The Authors Printed in The Netherlands — All rights reserved RHM Open Access article distributed in terms of the ISSN 2224-3534 EISSN 2415-5152 Creative Commons Attribution License [CC BY 4.0] https://doi.org/10.1080/22243534.2017.1355499 (http://creativecommons.org/licenses/by/4.0) DISCUSSION PAPER Revisiting the relevance of economic theory to hotel revenue management education and practice in the era of Big Data Natalie Haynes* and David Egan Sheffield Business School, Sheffield Hallam University, United Kingdom *Corresponding author email:
[email protected] This paper explores the role of economics in hospitality education and industry practice, with a particular focus on revenue management, and puts forward an argument for a return to the inclusion of economic theory in UK hospitality education, not seen since the 1990s. Given the increasing amounts of pricing data available to both managers and customers and the consequent market complexities now seen, developing economic literacy is demonstrated to be a crucial skill required for future hospitality graduates, allowing them to make successful revenue decisions and sense-check with confidence the decisions made by automated revenue systems. Economic literacy is defined as a balanced understanding of economic theory that can be applied in real-life business scenarios, extending beyond simple consideration of supply and demand to a mixture of neoclassical and behavioural approaches to economics. Keywords: economic theory,