Faculty & Research
Hotel Room Pricing Tool
By: Chris Anderson Ph.D.
Executive Summary: Based on the model explained in the report, "Setting Room Rates on Priceline: How to Optimize Expected Hotel Revenue," by Chris K. Anderson, the Hotel Room Pricing Tool is designed to optimize revenue for hotel rooms that are sold via Priceline.
Because Priceline's auction model is opaque, it is difficult for revenue managers to determine the discount off stated prices that will be successful in selling the room at the optimum price. The tool uses data from the Daily Demand Report, which Priceline provides its clients. The tool returns the optimum discount for the rooms which the hotel wishes to sell via Priceline, based on the data from that daily report.
To view the tool, please click on the link below
Priceline Pricing Tool
Download The Report
To view the corresponding report, please click on the link below.
Setting Room Rates on Priceline: How to Optimize Expected Hotel Revenue
Your Comments Please
If this CHR Report made a positive impact on your management approach or business operations, we welcome your commentary. We would like to post your comments on our website. Please submit your comments to js372@sha.cornell.edu and rohit.verma@cornell.edu.
About Chris Anderson Ph.D.
Chris Anderson is an assistant professor at the Cornell School of Hotel Administration. Prior to his appointment in 2006, he was on faculty at the Ivey School of Business in London, Ontario Canada. His main research focus is on revenue management and service pricing. He actively works with industry, across numerous industry types, in the application and development of RM, having worked with a variety hotels, airlines, rental car and tour companies as well as numerous consumer packaged good and financial services firms. Anderson’s research has been funded by numerous governmental agencies and industrial partners and he serves on the editorial board of the Journal of Revenue and Pricing Management and is the regional editor for the International Journal of Revenue Management. At the Hotel School he teaches courses in revenue management and service operations management.
For more information visit http://www.hotelschool.cornell.edu/research/facultybios/faculty.html?id=180