Risk information and markdowns-induced incentives to participate in hotel room resale schemes

Ling Ling (allyling@udel.edu), Timothy Webb (twebb@udel.edu) and Zvi Schwartz (zvi@udel.edu)
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Ling Ling: University of Delaware
Timothy Webb: University of Delaware
Zvi Schwartz: University of Delaware

Journal of Revenue and Pricing Management, 2022, vol. 21, issue 4, No 4, 418-430

Abstract: Abstract Enforcement is a key revenue management price discrimination tool. This study is first to address a hotel industry concern that enforcement is increasingly failing, as 3rd party agents resell unqualified prices to deal-oriented customers. We outline a decision model that involves the discount level (cost saving for the consumer) and information regarding a possible service denial by the hotel (risk to the consumer). Most importantly, this study is first to suggest, and empirically test, the notion that the level of discount might diminish the ability of information regarding service denial to reduce the undesirable behavior.

Keywords: Enforcement; Price discrimination; Unqualified discount prices; Service denial (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1057/s41272-021-00352-9

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