Abstract
Hotel room rates and available rooms via online channels vary from day to day. From the customer’s point of view, when should a tourist book a room? In order to detect the optimal time to purchase a hotel room, modelling dynamic hotel pricing behaviour patterns must be considered. Nonparametric techniques using isotonic functions are shown to be useful to estimate a reliable model that analyses the evolution of room rates. Online hotel prices were observed for eight months, collecting more than 133,000 valid records. The results of this study show that a generally recommended strategy is to make the booking at least 15 days prior to the arrival date. Other booking strategy patterns are also detailed.
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Domínguez-Menchero, J.S., Torres-Manzanera, E. (2018). Modelling Dynamic Hotel Pricing with Isotonic Functions. In: Gil, E., Gil, E., Gil, J., Gil, M. (eds) The Mathematics of the Uncertain. Studies in Systems, Decision and Control, vol 142. Springer, Cham. https://doi.org/10.1007/978-3-319-73848-2_11
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DOI: https://doi.org/10.1007/978-3-319-73848-2_11
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