The paper “Hotel dynamic pricing, stochastic demand and covid-19” that I co-authored together with Prof. Andrea Guizzardi and Prof. Luca Vincenzo Ballestra (Department of Statistical Sciences, Alma Mater Studiorum, University of Bologna) has been published on Annals of Tourism Research.
You can access the full paper by clicking here. This will take you directly to the final version of our article on ScienceDirect, which you are welcome to read or download and store. No sign up, registration or fees are required before December 24, 2022.
Abstract: In the paper we develop an innovative framework to study how hoteliers apply inventory control and price discrimination taking into account seasonality. We end up with a time-varying model that, using publicly available information, connects the early booking and last-minute pricing decisions. In doing so, we account for the expected demand size and price elasticity, the inventory put on sales, and the last-minute demand shocks. An analysis focused on 100 hotels in Milan (Italy) shows that during the Covid-19 last-minute discounts/surcharges remain stable over long periods while the role of advance booking as a lever for revenue management is reduced. Moreover, the pandemic has increased the last-minute adjustment at the short advance booking, especially for midweek days.
To cite this work:
Andrea Guizzardi, Luca Vincenzo Ballestra, Enzo D’Innocenzo, Hotel dynamic pricing, stochastic demand and covid-19, Annals of Tourism Research, Volume 97, 2022, 103495, ISSN 0160-7383, https://doi.org/10.1016/j.annals.2022.103495 – https://www.sciencedirect.com/science/article/pii/S0160738322001463.
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