Variable Pricing in Hotel Industry: A Case Study for Budget Hotel In Indonesia

• Main Authors: Alina Hasna Rasyanti, 艾麗娜
• Other Authors: Vincent F. Yu
• Format: Others
• Language: en_US
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/48724158927247845912

碩士 === 國立臺灣科技大學 === 工業管理系 === 101 === The rising popularity of revenue management (RM) as a strategy to effectively allocate price and perishable resources nowadays is unquestionable. Relevant literatures in the context of RM are kept developing with their respective complexities, unexceptionally for hotel revenue management. However, not all of RM basic concepts could be applied to hotel industry, especially to budget hotels. Limited resource in advanced and integrated reservation system often hampers the process of recording booking request. This research therefore attempted to implement RM strategy in a more practical way through variable pricing, in a budget hotel in Yogyakarta, Indonesia. There are two customer segments involved in revenue calculation. The first segment is the group customer who dominated demand from January to June and from November to December, and the second is business customer who dominated demand from July to October. Variable pricing is implemented to obtain the optimum price for each month whereas revenue is achieved from simulating several scenarios under various conditions. Comparison of all scenarios proved that employing variable pricing would give better outcome, not only when executing it under current demand but also in the condition of stochastically or randomly generated demand. The result can be a good reference for hotel decision maker in the future.