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Dynamic pricing in different Spanish resort hotels

Author

Listed:
  • Aldric Vives

    (16745University of the Balearic Islands, Spain)

  • Marta Jacob

    (16745University of the Balearic Islands, Spain)

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.

Suggested Citation

  • Aldric Vives & Marta Jacob, 2021. "Dynamic pricing in different Spanish resort hotels," Tourism Economics, , vol. 27(2), pages 398-411, March.
    • Handle: RePEc:sae:toueco:v:27:y:2021:i:2:p:398-411
    DOI: 10.1177/1354816619870652
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    References listed on IDEAS

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