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The effect of time on hotel pricing strategy

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  • Josep Maria Raya

Abstract

Tourist product distribution over the Internet is encouraging companies to implement dynamic pricing policies. The aim of this article is to present an empirical model of the dynamics of room prices in tourist resorts on the Catalan coast. We estimate a discrete time duration model for the probability of a price change occurring at any particular time and a count model for the number of price changes occurring over the period. The results suggest that the largest marginal effects are caused by a change in the location, the hotel category and the market share.

Suggested Citation

  • Josep Maria Raya, 2011. "The effect of time on hotel pricing strategy," Applied Economics Letters, Taylor & Francis Journals, vol. 18(13), pages 1201-1205.
    • Handle: RePEc:taf:apeclt:v:18:y:2011:i:13:p:1201-1205
    DOI: 10.1080/13504851.2010.532091
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    References listed on IDEAS

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    1. Jenkins, Stephen P, 1995. "Easy Estimation Methods for Discrete-Time Duration Models," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(1), pages 129-138, February.
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    4. Wen Zhao & Yu-Sheng Zheng, 2000. "Optimal Dynamic Pricing for Perishable Assets with Nonhomogeneous Demand," Management Science, INFORMS, vol. 46(3), pages 375-388, March.
    5. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
    6. J.M. Espinet & M. Saez & G. Coenders & M. FluviÃ, 2003. "Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach," Tourism Economics, , vol. 9(2), pages 165-177, June.
    7. Hartman, Raymond S., 1989. "Hedonic methods for evaluating product design and pricing strategies," Journal of Economics and Business, Elsevier, vol. 41(3), pages 197-212, August.
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    Cited by:

    1. Jiung-Bin Chin & Mu-Chen Wu & Ling-Feng Hsieh, 2013. "Strategic planning of optimal resource allocation in response to global financial crisis -- a study of international tourist hotels," Applied Economics, Taylor & Francis Journals, vol. 45(23), pages 3316-3328, August.
    2. Meng-Ying Wang & Li-Chen Chou, 2024. "Evaluating information asymmetry effects on hotel pricing: a comparative analysis before and during the COVID-19 pandemic in the Taiwan’s market," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.

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