Pricing model development for hotel industries using game theory approach considering seasonal factor and uncertain demand

Abstract

This paper develops the pricing model for hotel industries competing in the same market segment. We consider the condition that the hotels may face the deterministic demand or uncertain demand and price sensitive customers. The seasonal factors are also considered. We use game theory to evaluate the systems for both deterministic and stochastic demand scenarios. Based on case studies we can conclude that in general pricing model considering stochastic demands enables to represent the actual system better than the deterministic demand model.