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dc.contributor.authorEnz, Cathy A.
dc.contributor.authorCanina, Linda
dc.contributor.authorLomanno, Mark
dc.date.accessioned2020-09-12T21:04:26Z
dc.date.available2020-09-12T21:04:26Z
dc.date.issued2009-08-01
dc.identifier.other5078628
dc.identifier.urihttps://hdl.handle.net/1813/71717
dc.description.abstractThis article examines the pricing, demand (occupancy), and revenue dynamics in the U.S. hotel industry for the period 2001 to 2007. The results of this seven-year study, which compares hotels' rates to the pricing behavior of competing hotels, reveal that in both bad times (2001—2003) and good times (2004—2007), hotels that offered average daily rates above those of their direct competitors had lower comparative occupancies but higher relative revenue per available rooms (RevPAR). Based on 67,008 hotel observations, this pattern of demand and revenue behavior was consistent for hotels in all market segments (resorts and extended-stay properties were excluded from the study). Overall, the results suggest that the best way for a hotel to have higher revenue performance than its competitive set is to maintain higher rates. This finding suggests that lodging demand may be inelastic in local markets. The results of this study confirm the stance of hotel operators who resist the pressure to undercut competitors' prices.
dc.language.isoen_US
dc.rightsRequired Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.
dc.subjecthotel operations
dc.subjectstrategic pricing
dc.subjectlodging demand
dc.subjectmacroeconomics
dc.titleCompetitive Pricing Decisions in Uncertain Times
dc.typearticle
dc.description.legacydownloadsEnz17_Competitive_Pricing_Decisions_in_Uncertain_Times.pdf: 1350 downloads, before Aug. 1, 2020.
local.authorAffiliationEnz, Cathy A.: cae4@cornell.edu Cornell University
local.authorAffiliationCanina, Linda: lc29@cornell.edu Cornell University
local.authorAffiliationLomanno, Mark: Smith Travel Research


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