Pamplin College of Business
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The Pamplin College of Business generates high quality applied and theoretical research that supports superior teaching and business applications. Graduates of the Pamplin College, applying their analytical and decision making skills, help businesses create solutions, enhancing their competitiveness in the global business environment and improving the lives of their families and society.
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Browsing Pamplin College of Business by Author "Abrate, Graziano"
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- Dynamic pricing strategies: Evidence from European hotelsAbrate, Graziano; Fraquelli, Giovanni; Viglia, Giampaolo (International Journal of Hospitality Management, 2012)How much do hoteliers actually make use of dynamic pricing strategies? We collected data on the price of a single room booked in advance (from three months to a single day), from almost 1000 hotels in eight European capital cities. Pricing strategies were analyzed by means of descriptive statistics, box plots and econometric panel data techniques. The empirical results show that the inter-temporal pricing structure primarily depends on the type of customer, the star rating and the number of suppliers with available rooms.
- The impact of dynamic price variability on revenue maximizationAbrate, Graziano; Nicolau, Juan Luis; Viglia, Giampaolo (Elsevier, 2019-10-01)The objective of this article is to analyze the effect of dynamic price variability on revenue maximization. While dynamic pricing is a common practice in tourism, this is the first comprehensive study on the relationship between price variability and revenue maximization. Within the framework provided by the literature on intertemporal price discrimination, price fairness, inventory controls and organizational culture, this research proposes and applies a new hedonic revenue model on a sample of 21,687 observations. The findings suggest that higher dynamic price variability leads to higher hotel revenues. Strategic room unavailability and review rating also exert a clear positive revenue impact. Overall, the benefits from charging different prices for the same service (intertemporal price discrimination) and limiting the number of units available before the demand is known (inventory control) outweigh the potential negative effects of price unfairness and organizational culture. The paper concludes by providing actionable levers for hospitality managers.
- Strategic and tactical price decisions in hotel revenue managementAbrate, Graziano; Viglia, Giampaolo (Tourism Management, 2016)Dynamic pricing techniques allow using a number of variables in a tactical way compared to standard catalogue prices. This study merges in a conceptual model the relevance of the tactical and the strategic dimension of these variables, classified according to their tangible, reputational or contextual nature. To empirically validate the hypotheses, a database of 21.596 price observations was retrieved from booking.com. The study presents a hedonic price function, using the Shapley-Owen decomposition of the Rsquared to elicit the importance of each group of factors. Further, a hierarchical cluster analysis measures the presence of heterogeneity across operators. The results show that online reputation is gaining importance over the traditional star rating. Despite the tangible variables remain of paramount importance, the findings suggest the relevant role of contextual variables in short-run price variations. The players operating in the tourism and hospitality industries should integrate these findings when designing pricing strategies.