Game—The Hotel Game: Pricing Simulations with Opaque and Transparent Channels

Abstract

We present a pricing simulation game designed to facilitate the delivery of economics knowledge through a team-based and hands-on learning experience. The game provides insights into the relationship between selling channels, market structure, and optimal pricing. Players take the role of hotel managers in charge of the pricing strategies for the transparent and “opaque” selling channels in both the peak and off-peak seasons. The game can be played in class or remotely, and its design allows instructors to tailor each game to their particular teaching needs. They can adjust the parameter values associated with demand uncertainty, product differentiation, hotels’ cost structure, number of hotels, and asymmetries among hotels. In addition, the game allows for repeated interaction, and the instructor can specify the amount of information about competitors that becomes public to players after each round of play. Teaching Note: Interested Instructors please see the Instructor Materials page for access to the restricted materials. To maintain the integrity and usefulness of cases published in ITE, unapproved distribution of the case teaching notes and other restricted materials to any other party is prohibited.