Working Papers (2010)

7, 2010

Dynamic pricing strategies and customer heterogeneity: the case of European hotels

autori

Graziano Abrate
Università del Piemonte Orientale “A. Avogadro”, Novara, HERMES, Moncalieri

 Giovanni Fraquelli
Università del Piemonte Orientale “A. Avogadro”, Novara
HERMES, Moncalieri, CERIS-CNR, Istituto di Ricerca per l’Impresa e lo Sviluppo, Moncalieri

 Giampaolo Viglia
Università del Piemonte Orientale “A. Avogadro”, Novara, Università di Torino

 

Abstract - How much hoteliers do actually make use of dynamic pricing strategies? This work aims at providing some evidence on the actual behaviour of operators in the hotel industry. The empirical analysis is carried out over a sample of almost 1000 hotels distributed around different European capital cities. We collected data for different types of booking days, in particular an intraweek day, usually characterised by the presence of business travellers, and a Saturday, more suitable for a leisure trip. According to the empirical results we demonstrated that more than 90% of fares changed in the period considered, with an inter-temporal structure primarily depending on the type of customer (leisure or business) and on star rating.


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