Research On The Application Of Dynamic Pricing Strategy In S Hotel

The domestic modern hotel industry starts from 1970 s,and with the booming economic development,tourists and business travelers are increasing gradually.The whole hotel industry has entered a high development period from the beginning of the 21 st century,so that hotels spring up in first-tier cities and hot tourist areas.From 2010,the hotels all over the country continue to increase,accumulating to 12,327 totally by the end of 2015 year from National Tourism Administration's report.So the competition in hotel industry becomes much fierce by the dramatic increase in recent 50 years.The paper focuses on the dynamic pricing problems in the real competition for the hotels in the two or three tier cities,and presents the importance of dynamic pricing in hotel operations,and provides the coping strategies.Dynamic pricing also brings problems while boosting revenue,such as 1)Unhealthy dynamic pricing causes customers' distrust and complaints.2)Impacts on the loyalty of strategy-type customers.3)Falling into vicious price war.This dissertation explains current situation and problems for dynamic pricing in S hotel operation.Through analysis of three aspects from hotel,competitors and consumers,it gains the corresponding improvements and countermeasures of Hotel S's dynamic pricing.It provides the guide for the dynamic pricing strategy to Hotel S through theory analysis like third-degree price discrimination,competitive pricing game,and marginal income ratio.This article also gives the directions for the hotels under business circumstances in the two or three tier cities,so that they can take effective coping strategies and better dynamic pricing in the various competitions,and achieve higher hotel revenue while avoiding adverse competition.