Skip to content

Strategic and tactical price decisions in hotel revenue management

Research output: Contribution to journal › Article

Dynamic pricing techniques allow using a number of variables in a tactical way compared to standard catalogue prices. This study merges in a conceptual model the relevance of the tactical and the strategic dimension of these variables, classified according to their tangible, reputational or contextual nature.

To empirically validate the hypotheses, a database of 21.596 price observations was retrieved from booking.com. The study presents a hedonic price function, using the Shapley-Owen decomposition of the R-squared to elicit the importance of each group of factors. Further, a hierarchical cluster analysis measures the presence of heterogeneity across operators.

The results show that online reputation is gaining importance over the traditional star rating. Despite the tangible variables remain of paramount importance, the findings suggest the relevant role of contextual variables in short-run price variations. The players operating in the tourism and hospitality industries should integrate these findings when designing pricing strategies.
Original languageEnglish
Pages (from-to)123-132
Number of pages10
JournalTourism Management
Volume55
Early online date23 Feb 2016
DOIs
StatePublished - Aug 2016

Documents

  • Strategic and tactical price decisions in hotel revenue management postprint

    Accepted author manuscript (Post-print), 722 KB, PDF-document

    Due to publisher’s copyright restrictions, this document is not freely available to download from this website until: 23/02/18

    License: CC BY-NC-ND

Related information

Relations Get citation (various referencing formats)

ID: 7066902