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The edge of competitiveness in the hotel industry is dynamic, which requires hotel business to devise a set of appropriate response measures to adapt with the changes in its environment. For Instance, the Hotel industry in Bandung is experiencing an escalation in demand and it has triggered a compet...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/9034 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The edge of competitiveness in the hotel industry is dynamic, which requires hotel business to devise a set of appropriate response measures to adapt with the changes in its environment. For Instance, the Hotel industry in Bandung is experiencing an escalation in demand and it has triggered a competition among hotels to maximize revenue. One of the methods to deal with increasing revenue lies in pricing, and attractive rates attract. Thus, increase in demand will lead to increase in revenue. This paper discusses the use of Dynamic Pricing by looking at how the Hotel X utilizes this method to maximize its revenue. In this research, the author found that the weakness point from the existing system is they did not have the exact formula to set the discount rate and how many rooms that they should protect for high fare. They should revaluate their strategy and consider the dynamic pricing. The author proposed solution by using daily dynamic pricing strategy with protection level and booking limit in order to maximize the revenue. This protection level strategy is a strategy to sell the number of rooms at high fare. Hotels usually offer rooms to both leisure and business travelers. Leisure travelers are more prices sensitive and tend to reserve rooms well in advance of their stay. Business travelers are generally willing to pay more for a room, in part because they tend to book much closer to the time of their trip. The analysis have shown that with using daily dynamic pricing strategy with protection level and booking limit can help Hotel X to maximize revenue to 33.3%. |
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