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Pricing in the Hospitality Industry: An Implicit Market Approach

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Abstract

The authors apply economic theory to an analysis of industry pricing. Data from a cross-section of San Francisco hotels is used to estimate the implicit prices of common hotel amenities, and a procedure for using these prices to estimate consumer demands for the attributes is outlined. The authors then suggest implications for hotel decision makers. While the results presented here should not be generalized to other markets, the methodology is easily adapted to other geographic areas.

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1990-10-01

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pricing; amenities; hospitality industry; economic theory

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Government Document

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Required Publisher Statement: © FIU Hospitality Review. Reprinted with permission. All rights reserved.

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