Study On The Pricing Strategy Of Hotel Under The Network Environment

With the rapid development of network technology, people’s lifestyle and consumption pattern changed dramatically. E-commerce is playing an increasingly important role in today’s economy, new consumption patterns emergence frequently. While bringing the development opportunities, new consumption patterns makes the revenue management technology confront new challenges. The hotel industry as a key application field of revenue management theory, should seize the opportunity for development, and actively expand the online market.In this paper, we focus on the pricing strategy of online booking market. Considering the widely used online travel agents, we study the hotel revenue management problems. Based on differential pricing ideology and the theory of dual-channel supply chain, we build the traditional and Internet booking ways’ demand functions which were linear in self-and cross-price effects and the hotel revenue function and determine the optimal pricing strategy of the hotel’s online booking way. The effect of the optimal strategy is also discussed, and numerical simulation verifies that the optimal strategy can greatly improve the hotel revenue. The results show that:the price is not linearly decreased with increase of hotel rooms, hotel scale is a factor of pricing strategies.The main research work divides into the following four parts:The first part is the introduction, which introduced the development status of online booking market, the problems hotel industry faces, the research purpose of this paper.In the second part, we organized the existing researches of foreign and domestic scholars on revenue management, pricing strategy and dual-channel. By learning the view, content, methods and in sufficient of existing research, we complete the literature review.In the third part, based on the research background and related theory, build a framework for the problem of online book pricing. Under the stable demand and random demand, we concluded the optimal pricing strategy of online booking channel and the impact of relevant variables. The results show that:(1) the price of online booking is not linearly decreased with increase of hotel rooms, hotel scale is a factor of pricing strategies.(2)When determine the pricing of hotel rooms, supply and demand of traditional and online channels should be considered comprehensively.(3) At the critical point of introducing the online channel, demand fluctuation has great influence on the optimal pricing strategy, so the introduction of dual-channel have a certain risk.(4) Numerical experiments show that under the condition of demand fluctuations, expected return and the optimal return deviation can remain below10%.The fourth part summarize the main research work and conclusions, points out shortcomings of this paper, puts forward the future research direction.To deal with the age of network marketing, the research ideas and conclusions of this paper has certain instructive significance on the hotel industry. In service industry, the study and implementation of differential pricing has a certain reference value, relevant conclusions can also help businesses make better decisions when participating in e-commerce.