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Maximising hotel profits with pricing and room allocation strategies

Author

Listed:
  • Xun Xu
  • Yibai Li

Abstract

Hotels play an important role in the tourism supply chain by supplying essential accommodations. In today's dynamic and highly competitive market, a hotel's sales strategy significantly influences its profit. This study uses a theoretical modelling approach to help hotel owners make an optimal joint decision of pricing and room allocation strategy to maximise profits when facing new phenomena in the e-tourism era including various distribution channels, promotion programs, and contracts with travel agents. Our study provides optimal solutions for each scenario and discusses the influential factors. Managerial implications are provided.

Suggested Citation

  • Xun Xu & Yibai Li, 2017. "Maximising hotel profits with pricing and room allocation strategies," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 28(1), pages 46-63.
    • Handle: RePEc:ids:ijsoma:v:28:y:2017:i:1:p:46-63
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