Dynamic Pricing Strategy of Hotel Revenue Management

Abstract

With the increasingly fierce competition in hotel industry, hotel revenue management theory and methods emerges, as the times require, so it is very important to study the pricing strategy hotel room. This paper analyses the traditional hotel pricing strategy and its problems, and thus leads to the dynamic pricing method as the center of market and analysis of how to implement the dynamic pricing effectively. Based on modifying Littlewood law and EMSR-a model of revenue management capacity control applying to space industry often, it establishes a dynamic pricing model from the point of price. Hotel business revenue management could not only guide the hotel to realize scientific operation and management, but also make the hotel to maximize gains, so to survive and develop in the competition. This paper can enrich the theory of revenue management in hotel industry; at the same time for hotel room price has certain practical effect.