Advanced Selling in Hotel Revenue Management: How Willingness to Pay for Booking Conditions Changes over the Booking Horizon

摘要

This paper proposes a time-dependent discrete choice model for predicting consumer booking behaviour. By modelling consumers' preferences towards hotel room rate conditions (i.e. cancellation, date change and pay on departure) as a function of time, the notion is explored whether the perceived value of a rate condition, as well as the willingness-to-pay, changes over time. The choice model includes time as an additional 'attribute'. This attribute, however, does not present a feature of the choice propositions but instead is associated with the choice context.