Investigation of business client‘s behaviour in the context of price demand elasticity
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F25%3A00013511" target="_blank" >RIV/46747885:24310/25:00013511 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.18488/31.v12i1.4170" target="_blank" >https://doi.org/10.18488/31.v12i1.4170</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.18488/31.v12i1.4170" target="_blank" >10.18488/31.v12i1.4170</a>
Alternative languages
Result language
angličtina
Original language name
Investigation of business client‘s behaviour in the context of price demand elasticity
Original language description
The study‘s primary purpose is to investigate the behavior of business clients by measuring their coefficient of price elasticity of demand. Many revenue management studies describe this segment as price inelastic without empirical evidence. The paper uses an econometric approach to estimate the customers‘ reactions to pricing strategies. Log-log regression models based on OLS were used to figure out the coefficient of price demand elasticity. The data came from 9343 reservations made by business travelers that were taken from the property management system. Contrary to previous expectations and estimates, the findings show that business travelers are becoming more price-sensitive. The demand is price elastic for shorter stays of 2-3 nights (Epd=-1,121) or reservations from the business OTAs (Epd=-1,030). Most previous studies thought that business travelers wouldn’t care about price and wouldn’t be interested in online dynamic strategies. This study shows that their behaviour has changed. Contrary to previous revenue management studies, we propose widening the scope of their online activities to business clients who tend to be more flexible. Revenue management optimization processes might directly adopt the study’s results. Hoteliers should include business clients in their dynamic pricing strategies.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50901 - Other social sciences
Result continuities
Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Journal of Tourism Management Research>
ISSN
2313-4178
e-ISSN
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Volume of the periodical
12
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
13
Pages from-to
94-106
UT code for WoS article
001478249900004
EID of the result in the Scopus database
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