Sources of price elasticity of demand variability among Spanish resort hotels: a managerial insight

• Published in: Journal of hospitality and tourism technology 2023-02, Vol.14 (2), p.137-153
• Main Authors: Vives, Aldric, Jacob, Marta
• Format: Article
• Language: English
• Subjects: Consumer behavior; Customers; Demand curves; Elasticity of demand; Hotels & motels; Market segmentation; Market segments; Price elasticity; Revenue management; Seasons; Willingness to pay
• ISSN: 1757-9880; 1757-9880; 1757-9899
• DOI: 10.1108/JHTT-11-2020-0298

Purpose The purpose of this paper is to use demand behavior estimation to find the sources of price variability among resort hotels at different Spanish destinations. Design/methodology/approach This paper estimates online demand functions during high season for seven four-star resort hotels located at different Spanish destinations. Different price elasticity values are compared, and different factors affecting price elasticity are analyzed. Findings The main findings indicate that most of the high season periods display elastic demands, but factors such as a central location at a resort, recent refurbishments, the availability of additional facilities/services and a hotel targeted at the couples and/or half-board segments make the demand more inelastic; the Tenerife hotels had the most price-elastic demand; during the closest booking periods to the date of stay, the demand is usually more elastic; and a higher number of local competitors pushes down hotel prices. Originality/value This paper highlights the managerial implications of focusing on more profitable demand segments for hoteliers. This is especially useful for the development of revenue management software aimed at improving forecasts. 设计/方法/途径 该论文评估了位于西班牙不同目的地的七家四星级度假酒店在旺季期间的在线需求函数。比较不同的价格弹性值, 分析影响价格弹性的不同因素。 研究目的 本文的目的是使用需求行为估计来找出西班牙不同目的地度假酒店价格变化的来源。 研究发现 主要调查结果表明：（1）大多数旺季期间的需求弹性, 但诸如度假村的中心位置、最近的翻新、额外设施/服务的可用性以及针对夫妻和/的酒店等因素或半食宿使需求更加缺乏弹性; (2) 特内里费酒店的价格弹性需求最大; (3) 在离入住日期最近的预订期间, 需求通常更具弹性; (4) 更多的本地竞争者压低了酒店价格。 研究原创性/价值 本论文强调了酒店经营者应关注更有利可图的需求细分市场的管理意义。研究发现对于开发旨在改进预测的收益管理软件特别有价值。