THE ENDURING VALUE OF FLEXIBILITY: HOTEL PRICING DYNAMICS AND BEHAVIORAL CONSUMER RESPONSES TO RISK MITIGATION OPTIONS

Dr. Corwin E. Lasteur; Dr. Mirena J. Valtrice

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THE ENDURING VALUE OF FLEXIBILITY: HOTEL PRICING DYNAMICS AND BEHAVIORAL CONSUMER RESPONSES TO RISK MITIGATION OPTIONS

Dr. Corwin E. Lasteur ¹ , Dr. Mirena J. Valtrice ²

¹ School of Hotel Administration, Cornell SC Johnson College of Business, Cornell University, Ithaca, United States

² Department of Tourism and Service Management, Modul University Vienna, Vienna, Austria

Issue Vol. 1 No. 01 (2024): V0LUME01 ISSUE01 --- Section Articles --- Published Date: 2024-12-27

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Abstract

Have you ever wondered why that "flexible" hotel room always seems to cost a bit more, even when your trip is just around the corner and you're pretty sure you won't cancel? This article dives into that very question. While traditional economics often assumes we're all perfectly rational decision-makers, real-world observations show that our emotions and biases play a huge role in how we choose. We'll explore how hotels navigate this fascinating landscape, blending smart pricing strategies with an understanding of what makes us, the customers, tick. We'll look at how dynamic pricing works, why we feel certain prices are "fair," and the practical realities hotels face when they want to change their rates. By bringing together insights from behavioral science, revenue management, and business strategy, this study aims to give you a clearer picture of these complex market forces and offer some practical takeaways for anyone in the hospitality business.

Keywords

Price Stickiness, Behavioral Economics, Hotel Industry, Dynamic Pricing

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THE ENDURING VALUE OF FLEXIBILITY: HOTEL PRICING DYNAMICS AND BEHAVIORAL CONSUMER RESPONSES TO RISK MITIGATION OPTIONS. (2024). European Journal of Emerging Economics and Management, 1(01), 60-71. https://parthenonfrontiers.com/index.php/ejeem/article/view/107

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THE ENDURING VALUE OF FLEXIBILITY: HOTEL PRICING DYNAMICS AND BEHAVIORAL CONSUMER RESPONSES TO RISK MITIGATION OPTIONS

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