Factors Influencing Hotels’ Online Prices

Sérgio Moro, Paulo Rita, Cristina Oliveira

Research output: Contribution to journalArticle

21 Citations (Scopus)

Abstract

Digital corporations are creating new paths of business driven by consumers empowered by social media. Understanding the role that each feature drawn from online platforms has on price fluctuation is vital for leveraging decision-making. In this study, 5,603 simulations of online reservations from 23 Portuguese cities were gathered, including characterizing features from social media, web visibility, and hotel amenities, from four renowned online sources: Booking.com, TripAdvisor, Google, and Facebook. After data preparation, including removal of irrelevant features in terms of modeling and outlier cleaning, a tuned dataset of 3,137 simulations and 30 features (including the price charged per day) was used first for evaluating the modeling performance of an ensemble of multilayer perceptrons, and then for extracting valuable knowledge through the data-based sensitivity analysis. Findings show that all features from the encompassed factors (social media, online reservation, hotel characteristics, web visibility, and city) play a significant role in price.

Original languageEnglish
Pages (from-to)443-464
Number of pages22
JournalJournal of Hospitality Marketing and Management
Volume27
Issue number4
Early online date9 Nov 2017
DOIs
Publication statusPublished - 2018

Keywords

  • data mining
  • hotel reservation
  • Online booking
  • pricing
  • social media

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