Abstract
This research aims to employ game theory along with price and income elasticities of demand to reveal hidden strategies for maximizing revenue among competitors in the hotel market, focusing on New York and San Francisco over 20 years. Results suggest that demand for hotels in New York is characterized by luxury-driven income but responsive pricing, while San Francisco exhibits lower income levels but demonstrates Giffen elasticity. Both markets present opportunities for maximizing revenue per available room through a mutually beneficial strategy whereby average daily rates increase in New York and decrease in San Francisco.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Marketing Development and Competitiveness
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
