The Differentiated Pricing Strategy or Hotel under Dual-Channel Reservation Forms

Xiaoyan Xu, Rui Zhao, Liang Xu

School of Management, University of Science and Technology of China, Hefei, China.

DOI: 10.4236/jss.2014.24039                

Abstract

The modern information network environment largely changed consumer habits. Hotel Reservation way becomes increasingly diversified. By building the traditional and Internet booking ways’ demand functions which were linear in self- and cross-price effects and the hotel revenue function, we determine the optimal pricing strategy of the hotel’s Internet booking way. The effect of the optimal strategy is also discussed, and numerical simulation verifies that the optimal strategy can greatly improve the hotel revenue. All of the research propositions help hotel managers make deeper understanding of fixed room quantity’s influence on pricing strategies, and provide managers the basis of pricing strategy.

Keywords

Differentiated Pricing Strategy; Multi-Channel Reservation; Hotel Revenue Management

Conflicts of Interest

The authors declare no conflicts of interest.

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