Game theoretic pricing models in hotel revenue management: an equilibrium choice-based conjoint analysis approach
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Publication Date
2015-12Journal Title
Tourism Management
ISSN
0261-5177
Volume
51
Number
C
Pages
96-102
Language
English
Type
Article
This Version
AM
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Arenoe, B., van der Rest, J., & Kattuman, P. (2015). Game theoretic pricing models in hotel revenue management: an equilibrium choice-based conjoint analysis approach. Tourism Management, 51 (C), 96-102. https://doi.org/10.1016/j.tourman.2015.04.007
Abstract
This paper explores a game-theoretically founded approach to conjoint analysis that determines equilibrium room rates under differentiated price competition in an oligopolistic hotel market. Competition between hotels is specified in terms of market share functions that can be estimated using multinomial logit models of consumer choice. The approach is based on choice-based conjoint analysis that permits the estimation of attributes weights (“part-worths”) for an additive utility formulation of the utility function. From this, room rates that equilibrate the market, conditioned on the differences in services and facilities offered by competing hotels, can be determined. The approach is illustrated by an example.
Identifiers
External DOI: https://doi.org/10.1016/j.tourman.2015.04.007
This record's URL: https://www.repository.cam.ac.uk/handle/1810/256891
Rights
Attribution-NonCommercial-NoDerivatives 4.0 International, Attribution-NonCommercial-NoDerivatives 4.0 International, Attribution-NonCommercial-NoDerivatives 4.0 International
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