Comparative Analysis Of Sale Model About Hotels Based On Information Transparency

In opaque selling certain characteristics of the product or service are hidden from the consumer until after purchase,it allows firms to sell their differentiated products at discounted prices to attract price-sensitive consumers,Opaque selling has been widely adopted by online travel agents like Ctrip and Orbitz in booking tickets or hotels.In order to increase sales and profits,there are two types of opaque selling strategy—Posted Price(PP)and Name Your Own Price(NYOP).Consumer decisions affected by different strategies there also can affect profit of online travel platform,therefore,select the appropriate marketing strategies is particularly important for platform.we consider discount factor and develop a mathematical model to analyses the profit of platform under the single opaque strategy,mix opaque and regular strategy.We find that regular strategy better than opaque strategy when discount factor is small.mix opaque strategy better than single opaque strategy under capacity unlimited and it also better than single opaque strategy if capacity is large under limited.We derive the key conclusion of single NYOP strategy is special circumstances of mixed opaque strategy.It is also found that mixed opaque strategy is better for the platform if the bid parameters and discount valuation factor on NYOP enough larger.O n the contrary NYOP is better than PP.More derive the optimal selling price on PP and the optimal reserve price on NYOP.These conclusions could help the platform make operational strategy decisions.