Abstract:

The hospitality industry has been significantly impacted by the rise of online booking platforms, leading hotels to adopt new dynamic pricing policies to adapt to changing market conditions. This article reviews online hotel pricing strategies from three perspectives: demand, supply, and regional characteristics. On the demand side, electronic word-of-mouth (e-WOM) has become a critical factor in hotel room revenue and overall performance. It provides hotels with valuable information on guest needs, satisfaction, and loyalty, which can be used to optimize pricing strategies to increase revenue and customer satisfaction. Online guest reviews also play a crucial role in building a hotel's reputation, which in turn affects their online pricing policies. On the supply side, research on hotel pricing strategies is mostly based on standard competitive frameworks, highlighting the need for hotels to adopt more innovative pricing strategies to remain competitive in an ever-changing and volatile online market. This can be achieved by using big data and analytics to understand market trends, consumer behavior, and competition. Finally, the article highlights the significance of regional characteristics in online hotel pricing policies. The statistical analysis suggests that hotels located in areas with better accessibility and mobility tend to have higher online rates than those in less accessible areas. Therefore, hotels should consider regional characteristics when formulating pricing strategies. In conclusion, hotels should adopt flexible, innovative, and data driven pricing policies that consider various factors to maximize revenue, increase guest satisfaction, and stay competitive in the online marketplace.

Keywords:

Hotels; Demand; supply; Pricing strategies; Regional Characteristics.

JEL Classification:

L83, M31, C13.

How to Cite:

Brunela Trebicka and Taulant Kullolli. Analysis of Online Pricing Policies for Hotels: a Case Study of Durres, Albania. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a265/