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From uniform to bespoke prices: Hotel pricing during EURO 2016

Author

Listed:
  • Marcella Nicolini

    (University of Pavia)

  • Claudio A. Piga

    (University of Genoa)

  • Andrea Pozzi

    (EIEF
    CEPR)

Abstract

Using novel data on the pricing for hotel rooms in Paris during the summer of the 2016 European Football Cup, we document the co-existence of uniform and bespoke pricing within the same industry and even within the same firm. Although stay dates have heterogenous potential demand, hotels initially price them uniformly. However, as time goes by, they progressively set customized prices. We show that standard revenue management techniques can explain the shift and find evidence that the inability to form expectations about future demand was a determinant of the initial choice of uniform prices. Finally, we find that firm characteristics have a role in shaping the transition.

Suggested Citation

  • Marcella Nicolini & Claudio A. Piga & Andrea Pozzi, 2023. "From uniform to bespoke prices: Hotel pricing during EURO 2016," Quantitative Marketing and Economics (QME), Springer, vol. 21(3), pages 333-355, September.
    • Handle: RePEc:kap:qmktec:v:21:y:2023:i:3:d:10.1007_s11129-023-09264-x
    DOI: 10.1007/s11129-023-09264-x
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    More about this item

    Keywords

    Demand uncertainty; Revenue management; Managerial decision-making costs; Uniform pricing; Hotel industry;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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