Research on Hotel Room Pricing and Cancellation Policy Strategies Based on Consumer Cancellation Behavior

Abstract

Based on the unbooking behavior of consumers, a single-channel supply chain model of a single hotel is constructed, and the room demand of a hotel is constructed by combining the consumer utility theory. The profit and room pricing of hotels with different unbooking strategies are analyzed, as well as the selection of unbooking strategies. Studies have shown that hotel room prices always increase with the increase of cancellation losses. In the strategy of allowing cancellation, the demand of hotel rooms decreases with the increase of cancellation loss. In the policy of not allowing unbooking, the greater the loss of unbooking, the greater the demand for hotel rooms. In the no-cancellation policy, the demand for rooms decreases as the reputational damage of the hotel increases. The total profit of the hotel is affected by the matching degree of rooms, cancellation loss and reputation loss of the hotel, and these factors determine the choice of the unbooking strategy of the hotel. When the hotel specifically understands the reputation loss caused by the unbooking strategy, there are corresponding thresholds for  and , so that the hotel can develop the unbooking strategy with the best profit.