Individuals' capabilities in pricing their offering in commercial sharing systems

This study seeks to shed light on the capability and preparedness of individual sharing economy users to price their offering and adjust the pricing based on changes in demand. Central to the topic are the concepts of revenue management, yield pricing and price determinants identified in hotel industry and Airbnb price determination. The chosen research approach is to use statistical data analysis based on open source data from Insideairbnb.com and Trivago hotel price indices. This allows for drawing conclusions based on host pricing behavior during 2015-2017 in five Europeans cities, five North American cities and two Australian cities. All twelve are major cities with thousands of Airbnb listings available each month. Previous research has not sought to examine pricing in sharing economies in this way. Previous research has identified that user characteristics influence participation in sharing economy and findings in the empirical section of this study would suggest that a majority of users do not actively pursue higher profits through revenue management that is comparable with the hotel industry in magnitude. Additionally, this study showed that due to the different nature of rented space on Airbnb to hotels, prices may be cheaper closer to the actual stay rather than several months beforehand. This study does not suggest that Airbnb hosts should pursue higher profits and do business with their apartments. Hosts should be aware of the limitations that regulation sets on their rentals and applicable taxation practices. Should future business models be dependent on individuals pricing their own offering, based on the findings in this study, considerations should be made not only from the view of the viability of the business for the individual and platform provider, but also the regulatory point of view to avoid unleveled playing fields and predatory pricing

Customer satisfaction & engagement behaviors towards the room rate strategy of luxury hotels

Purpose - This study investigates the attributes that impact hotel users' experiences, satisfaction levels, and engagement behaviors through dimensions of the room rate strategy in the context of luxury hotels in Vietnam tourism market. Design/methodology/approach - A questionnaire was prepared, drawing from the scales in literature. A PLS-SEM tool was used to measure and test research hypotheses from the data set of 319 completed surveys in the online and offline form. Findings - The results indicate that higher the service quality towards dynamic hotel room rates, higher are customer satisfaction and engagement behaviors (CEBs). The significant perception of hotel users is mostly caused by “price fairness,” and it in turns, influences customer satisfaction levels. In particular, customer satisfaction serves as a partial mediation on customers' perception of the hotel room rate strategy when service quality and CEBs are perceived. Originality - Understanding the variables that predict room rate strategy proposes suggestions for practitioners and hospitality researchers. This study empirically examines the extent to which factors discussed may influence the hotel room rate strategy accordingly to heighten customers' satisfaction and engagement behaviors. © 2019 University of Rijeka. All rights reserved.Internal Grant Agency of Faculty of Management and Economics, Tomas Bata University in Zlin [IGA/FaME/2018/009

PRICE ELASTICITY OF DEMAND FOR HOTEL SERVICES ON THE BUSINESS EXAMPLE OF TWO HOTELS IN THE REPUBLIC OF CROATIA

The paper analyses the elasticity of demand for hotel services in two different destinations in the Republic of Croatia, Zagreb and Dubrovnik, using the Sheraton Zagreb Hotel and the Sheraton Dubrovnik Riviera Hotel as examples in 2019 before the pandemic. Through the analysis of statistical data from the relevant tourist offices and based on the analysis of case studies of two hotels, it is found that the price elasticity of demand for hotel services depends on a number of different factors, such as the availability and type of hotel service for which there is a demand, the type of market, pricing policy, the specificity and diversity of destinations, seasonality and others. From the analysis it appears that it is necessary to consider the elasticity of demand in all its sub-segments, taking into account the peculiarities of all types of demand, which differ significantly (leisure, “city breaks”, MICE tourists, etc.) in the destinations mentioned, despite some basic similarities of the hotels observed (identical brand business standards of the global hotel company, identical franchise agreements, etc.). In summary, there is a relationship between low hotel occupancy (low season) and relatively high price elasticity of demand and high hotel occupancy (high season) and relatively high price inelasticity of tourism demand

Analysis of sun-and-beach markets on large islands in the mediterranean using tourist acommodation prices as an indicators

Purpose – This paper uses the prices of holiday accommodations on large Mediterranean islands specialising in sun and beach tourism to determine their initial state in 2015, their competitiveness and their further evolution until 2019. Methodology/Design/Approach – Following the process of each potential tourist, a total of 21,628 prices were collected from the Internet. Then, the collected data were used in the construction of charts and price indices and the application of a method of cluster analysis (HAC). Findings – Between 2015 and 2019, tourism prices in the Mediterranean region increased sharply. Moreover, the geographic segmentation already observed in 2015 between Western and Eastern Mediterranean destinations intensified. In addition, the paper shows that there is robust demand for sun and beach tourism in island destinations. Originality of the research – Major island markets specialising in sun and beach tourism were used to exclude any interference from professional travellers, people visiting friends or relatives, or tourists willing to bear the cost of travel to less visited destinations

THE RELATIONSHIP BETWEEN ONLINE RATING, HOTEL STAR CATEGORY AND ROOM PRICING POWER

In the digital way of doing business we see a substantial rise of online customer feedback and customer information sharing communities. The role and importance of social media has considerably increased in the past several years and businesses can no longer overlook its impact. For companies, the acceptance of such sources are not only tangential rather they are becoming central in how they approach their operations. Numerous web based platforms that include social networking, online communities and review sites are critical reference points for companies while deciding how to structure and price their products and services. The tourism and hospitality industry is no exception to this phenomenon, as a matter of fact, it is at the very forefront of this new trend that we are observing. Some of these sites are more popular than others, such as TripAdvisor, Booking.com, Travelocity or Expedia but all of them affect how service providers conduct their business, specifically in the area of pricing. The aim of this paper is to examine and quantify the relationship between customer online rating, hotel category and room pricing power in hotel industry. Findings suggest that there is a statistically significant relationship between hotel star category, online rating and service provider’s room pricing power. Moreover, results indicate a strong correlation between TripAdvisor and Booking.com online customer reviews, suggesting that contrary to popular beliefs, TripAdvisor is as reliable as Booking.com

The impact of COVID-19 on AIRBNB prices

Dissertation presented as the partial requirement for obtaining a Master's degree in Statistics and Information Management, specialization in Risk Analysis and ManagementNowadays, the main part of the population around the world uses online sites to find local homes for vacations or even more long-term stays. One of the most popular sites of short-term rental market is Airbnb. These rental markets have grown rapidly over the last decade which leads to the fast-growth of Airbnb (E. Holm, 2020). “How COVID-19 impacted Airbnb prices in Lisbon?” is the main question of this work. Throughout the study it will be possible to understand the effects of pricing strategies, price positioning and dynamic pricing, more precisely if COVID-19 affected Airbnb in a way that leads to changes in the trends of the prices per night in the various accommodation that Airbnb has in the chosen cities. To answer this question, was constructed a database with data extracted from the website InsideAirbnb. Our findings suggest that Berlin prices comparing to Lisbon have decreased 2.66% during this pandemic

Price Strategy, Market Orientation, and Business Performance in the Hotel Industry

This study seeks to study the relationship between market orientation and business performance and to evaluate the mediating effect of adopting a low-price strategy in this relationship in the hotel industry. A sample from the Spanish and Portuguese hotel industry is used. Results show that the effect of market orientation on business performance is positive and direct. On the other hand, the results do not confirm the mediating effect of a strategy based on low-price in the strength of this relationship. Moreover, results indicate that a price strategy based on low-price is negatively related to hotel business performance.info:eu-repo/semantics/publishedVersio