Modeling average daily rate (ADR) volatility index and room price positioning matrix

Yoon Koh, Agnes DeFranco and Ki-Joon Back
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Yoon Koh: University of Houston, USA
Agnes DeFranco: University of Houston, USA
Ki-Joon Back: University of Houston, USA

Tourism Economics, 2017, vol. 23, issue 7, 1476-1483

Abstract: Although strategic pricing literature identifies two key dimensions of relative price position and relative price fluctuation, only recently has relative price fluctuation started to gain attention in the hospitality and tourism literature. Given the theoretical and empirical support for considering both dimensions in strategic pricing positioning, this study developed a new index that calculates relative price fluctuation: the ADR volatility index. This new index provides a more complete picture of the pricing positioning of a lodging property. Together with a room price positioning matrix, these two new tools can assist hotels in maximizing their room revenues.

Keywords: average daily rate (ADR); fluctuations; index; pricing; relative price (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:23:y:2017:i:7:p:1476-1483

DOI: 10.1177/1354816617702051

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