Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  7   Issue 06  2017  
Article Abstract
Improving Hotel Revenue through the Implementation of a Comprehensive Dynamic Pricing Strategy: A Conceptual Framework and Empirical Investigation of Jordanian Hotels
Keywords:  Revenue Management, Dynamic pricing, Value-based pricing, Hotel pricing tactics.
Firas J. Al-Shakhsheer , Ma’moun A. Habiballah , Mukhles M. Al-Ababne and Jebril A. Alhelalat
The present study aimed to investigate the revenue implications of implementing a comprehensive dynamic pricing strategy in the hotel industry. To this end, the study proposed a conceptual framework that depicts the comprehensive dynamic pricing strategy as a composite concept combining dynamic pricing and value-based pricing along with a set of supporting tactics, including fenced pricing, product versioning, opaque pricing and bundled pricing. Principal component analysis was used with multiple regression analysis to identify the main components of the comprehensive dynamic pricing strategy and verify the impact of their implementation on the revenue performance of a sample of 131 Jordanian hotels during 2014-2016. The empirical results strongly supported the hypothesis that hotels that actively implement dynamic value-based pricing strategies and their supporting tactics achieve significantly higher RevPARs than those that do not actively implement these strategies and tactics. Accordingly, a set of recommendations were proposed to help hoteliers implement the comprehensive dynamic pricing strategy effectively.
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