eCommons

 

Competitive Hotel Pricing in Europe: An Exploration of Strategic Positioning

Other Titles

Abstract

This study explores the effects of competitor pricing levels on relative revenue on a sample of over 4,000 hotels in Europe over a ten-year period (2004–2013). Hotels in this European sample, which included both independent and chain-affiliated properties, achieved higher revenue per available room (RevPAR) than direct competitors when they positioned their hotels with comparatively higher prices. These data revealed that regardless of the economic situation of the time period, hotels that positioned with average daily rates (ADRs) above those of their direct competitors benefited from higher relative RevPAR even though they experienced lower comparative occupancies. This finding was stronger for chain-affiliated hotels than for independent hotels. Maintaining a consistent relative price over time (as compared to having a fluctuating price) did not significantly affect revenue performance, controlling for hotel type and location. A further analysis of hotels in the Netherlands likewise found the same connection between relatively higher rates and revenue. As is the case with previous, similar studies, the findings argue for a firm, strategic approach to pricing, rather than a reactive or strictly tactical approach.

Journal / Series

Volume & Issue

Description

Sponsorship

Date Issued

2015-02-01

Publisher

Keywords

average daily rates (ADR); revenue per available room (RevPAR); pricing levels; European hotels

Location

Effective Date

Expiration Date

Sector

Employer

Union

Union Local

NAICS

Number of Workers

Committee Chair

Committee Co-Chair

Committee Member

Degree Discipline

Degree Name

Degree Level

Related Version

Related DOI

Related To

Related Part

Based on Related Item

Has Other Format(s)

Part of Related Item

Related To

Related Publication(s)

Link(s) to Related Publication(s)

References

Link(s) to Reference(s)

Previously Published As

Government Document

ISBN

ISMN

ISSN

Other Identifiers

Rights

Required Publisher Statement: © Cornell University. This report may not be reproduced or distributed without the express permission of the publisher

Rights URI

Types

article

Accessibility Feature

Accessibility Hazard

Accessibility Summary

Link(s) to Catalog Record