Resumen de Predicting the direction of dynamic price adjustment in the Hong Kong hotel industry
Ibrahim Mohammed, Basak Denizci Guillet, Rob Law, Wassiuw Abdul Rahaman
This study analysed dynamic pricing data of Hong Kong hotels within the last-minute 1-weekbooking window to determine patterns and direction of room rate changes and their asso-ciation with hotel characteristics regarding tangible attributes, reputational variables andcontextual factors. Findings show that room rates are more likely to increase than decreaseor stay constant, and that, holding demand and market conditions constant, the likelihood ofprice increases (decreases), based on standard binomial probit regression, is positively(negatively) associated with size (tangible attribute), chain affiliation and star rating (reputa-tional attributes), and seller density and location accessibility (contextual factors). Theseresults confirm the importance of differentiation in pricing hotel rooms and indicate howhotel customers and revenue managers can combine these characteristics with predicteddemand to anticipate the direction of room rate change in the last-minute booking window asthe booking horizon approaches check-in.
