Maximising hotel profits with pricing and room allocation strategies

Xun Xu and Yibai Li

International Journal of Services and Operations Management, 2017, vol. 28, issue 1, 46-63

Abstract: Hotels play an important role in the tourism supply chain by supplying essential accommodations. In today's dynamic and highly competitive market, a hotel's sales strategy significantly influences its profit. This study uses a theoretical modelling approach to help hotel owners make an optimal joint decision of pricing and room allocation strategy to maximise profits when facing new phenomena in the e-tourism era including various distribution channels, promotion programs, and contracts with travel agents. Our study provides optimal solutions for each scenario and discusses the influential factors. Managerial implications are provided.

Keywords: hotel; pricing; room allocation; profit maximisation. (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijsoma:v:28:y:2017:i:1:p:46-63

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