The wheel of dynamic pricing: Towards open pricing and one to one pricing in hotel revenue management

Abstract

Dynamic pricing is at the core of hotel revenue management (RM). Big data technologies have facilitated information processing and enriched dynamic pricing techniques. One of the challenges in the sector relates to price personalization, i.e., how prices can be adjusted at the customer level. Using a qualitative approach, the study analyzes how dynamic pricing is currently implemented in hotel RM. By doing so, this research shows empirical evidence of the use of recent concepts in the industry like “open pricing” and identifies the opportunities and challenges of a customer-centric approach to pricing. From a theoretical perspective, the study may guide future research on pricing in hotel RM. Finally, this work also presents actionable insights for practitioners.