On the Stackelberg game model of the collaboration of a hotel and third-party booking websites

C. I. Chiang () and Y. H. Cheng
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C. I. Chiang: Hsuan Chuang University
Y. H. Cheng: Hsuan Chuang University

Journal of Revenue and Pricing Management, 2022, vol. 21, issue 1, No 8, 97-105

Abstract: Abstract This study aims to apply the bi-level game theory model to explore how a hotel collaborates with third-party websites to determine the optimal room rate and the number of overbooking to maximize the hotel’s total profit. The results show that the proposed bi-level game model not only can provide optimal room rate and the number of overbooking to the hotel but also the marketing efforts to third-party websites. The optimal room rate is significantly affected by the arrival rate and the hotel's marketing efforts; however, the compensation rate does not influence room rate and the number of overbooking.

Keywords: Stackelberg game; Optimal room rate; Overbooking; Third-party booking websites (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1057/s41272-021-00283-5

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