Dynamic pricing in different Spanish resort hotels

Aldric Vives and Marta Jacob
Additional contact information
Aldric Vives: 16745University of the Balearic Islands, Spain
Marta Jacob: 16745University of the Balearic Islands, Spain

Tourism Economics, 2021, vol. 27, issue 2, 398-411

Abstract: The present study uses data on seven 4-star hotels belonging to the same multinational hotel chain located in different Spanish regions. The objective is to estimate the dynamic prices that allow the hotel revenue maximization during high season. The study includes the demand functions of seven resort hotels and implements a dynamic pricing deterministic model to estimate the prices that will maximize the hotel revenue for each date of stay. The results point out general revenue management implications, mainly that hotels located in the same destination should follow individualized pricing policies, more focused in the specific hotel and tourists’ characteristics; while in practice, hotel companies apply similar pricing policies to hotels located in the same destination. Furthermore, the deterministic model performs well with the data available on seven different hotels with different customer profiles and hotel characteristics.

Keywords: demand function; deterministic model; dynamic pricing; resort hotels (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1354816619870652 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:toueco:v:27:y:2021:i:2:p:398-411

DOI: 10.1177/1354816619870652

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().