How do hotels adapt their pricing strategies to macroeconomic factors?

Blengini, Isabella (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Heo, Cindy Yoonjoung (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland)

The hospitality industry is naturally highly sensitive to subtle changes in the external environment, and its performance is affected by various external factors. Therefore, hoteliers should carefully monitor the various macroeconomic indicators affecting the market, when making important strategic management decisions. In particular, hotels’ pricing decisions are important because they play a crucial role in the determination of hotel revenue and in the process of profit maximization. In this paper we classify hotels by business model (i.e., chain management, franchise and independent) and analyze how these different types of hotels in Switzerland adapt their pricing strategies to macroeconomic factors (i.e., exchange rate, room supply and market demand). We find that hotels adopting different business models react differently to the same macro shock. Implications of our findings and future research directions are discussed.


Keywords:
Article Type:
scientifique
Faculty:
Economie et Services
School:
EHL
Institute:
Aucun institut
Subject(s):
Economie/gestion
Date:
2020-07
Pagination:
3 p.
Published in:
International journal of hospitality management
Numeration (vol. no.):
2020, vol. 88, article 102522, pp. 1-3
DOI:
ISSN:
0278-4319
Appears in Collection:

Note: The file is under embargo until: 2023-07-01


 Record created 2020-09-25, last modified 2020-10-27

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