Dynamic pricing in hospitality: overview and opportunities

Abstract

While dynamic pricing as a discipline is well developed and a critical aspect of many approaches to revenue management it remains relatively underdeveloped in hospitality applications. In the following we outline the distinctions between variable and dynamic pricing and highlight their role within revenue management. We provide an overview of dynamic pricing research within hospitality with a focus on the dynamic pricing of hotel rooms. In our discussion of dynamic pricing research, we focus on how this research relates to the current state of hotel room pricing. Through the linkage of research to practice we are able to highlight opportunities for future dynamic pricing research efforts within hospitality specifically.