Price Effectiveness in Hotels: Case Study Comparing Strategies Adopted by Mid-Size Hotels in New Delhi

Price Effectiveness in Hotels: Case Study Comparing Strategies Adopted by Mid-Size Hotels in New Delhi

Nidhi Chowdhry (Jaipur National University, India)
Copyright: © 2014 |Pages: 11
DOI: 10.4018/978-1-4666-4357-4.ch012
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Abstract

This case study focuses on the mid-size hotel industry in India. It will analyze the extent to which the pricing strategies are adopted in order to optimize revenues. The mid-size segment is comprised of three and four star hotels, which cater to the average foreign and domestic leisure travelers. Pricing is the single greatest challenge facing independent hotels today. It is studied how determining optimal rates based on the patterns of price sensitivity of demand still remains the biggest challenge for these hotels. Price sensitivity and its impact on revenue are examined. To determine and analyze this challenge faced by mid-size hotel industry, the case will focus on pricing strategies and challenges faced by a midscale chain hotel and a stand-alone economy hotel in New Delhi. The hotels have been taken from National Capital Region (New Delhi) which is the largest hotel market in the country both in terms of active assets under development and potential projects in planning.

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