Dynamic pricing assuming demand shifting: the alpine skiing industry

Malasevska, Iveta; Haugom, Erik; Hinterhuber, Andreas; Lien, Gudbrand; Mydland, Ørjan

doi:10.1080/10548408.2020.1835787

Cited by 12 publications

(6 citation statements)

References 60 publications

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“…Dynamic pricing refers to a pricing approach in which the price of a product or service changes depending on a variety of criteria. (Malasevska et al, 2020). The strategy for changing and designing dynamic prices for goods and services in tourism village activities needs to be mastered by tourism village actors so that it is easy for third parties such as OTAs to participate in selling the products.…”

Section: Resultsmentioning

confidence: 99%

Winning Tourism Digitalization Opportunity in the Indonesia CBT Business

Priatmoko¹,

Dávid²

2021

GTG

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This research aims to examine the opportunities of Information Communication Technologies (ICT) and its use for the rural tourism businesses. The study used purposive random sampling of presence of tourist villages product in the Online Travel Agency (OTA) application in Indonesia. From the OTA, it can be seen the rural tourism destinations product related offerings suggestion. From the recommended destinations, assessment and comparison is made with the village’s official website and other online resources.Tourism villages and their market need to be met comprehensively understanding with OTA app developers to get better future business results.

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Section: Resultsmentioning

confidence: 99%

Winning Tourism Digitalization Opportunity in the Indonesia CBT Business

Priatmoko¹,

Dávid²

2021

GTG

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“…The obtained results suggested that most skiers will ski on sufficient occasions to receive at least a 50% discount on the daily season ticket price. Another study analyzed how changes in a company's pricing strategy can influence its profitability [75]. This research showed that dynamic pricing induces higher demand and thus can increase revenues.…”

Section: Discussionmentioning

confidence: 99%

Influence of Service Valuation and Package Cost on Market Segmentation: The Case of Online Demand for Spanish and Andorra Ski Resorts

et al. 2021

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Ski resorts are important tourist resources in mountain areas. They have a high impact on the environment but also on the development of the territory. Corporate social responsibility management plays an important role in influencing consumer purchasing behavior. This research seeks to understand the behavior of ski tourists and to classify them. Approximately 50,000 online purchases of tourist packages to ski resorts in Spain and Andorra are analyzed in order to describe the different segments of demand in these resorts through a latent class model. The tourists’ age and previous experience, the type of accommodation, and the season—among other variables—are considered to clarify the different classes. Six different segments were found. Some relevant results for the online ski-package market are highlighted, such as the influence of skier’s expenditure on service valuation. Managerial implications, limitations of this study and recommendations for future research are also discussed.

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“…Despite such negative consequences, many service firms are shifting from simpler differential pricing to more complex algorithms that combine multiple criteria. For example, many ski resorts are moving away from seasonal passes and student discounts in favor of algorithms that include weather conditions, day of the week, and demand (Malasevska et al 2020). Dynamic pricing's spread to new service contexts and the ensuing firestorms underscore the need for service providers to better understand the negative consequences of this pricing tactic.…”

Section: Introductionmentioning

confidence: 99%

Consumers’ Intentions to Spread Negative Word of Mouth About Dynamic Pricing for Services: Role of Confusion and Unfairness Perceptions

Bambauer-Sachse

Young

2023

Journal of Service Research

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This paper examines the effects of dynamic pricing versus simple price differentiation for services through price confusion and price unfairness perceptions on price-disadvantaged consumers’ intentions to spread negative word of mouth (WOM); we additionally differentiate between these customers based on specific service purchase frequency. To test our hypotheses regarding price confusion as an important driver of undesirable consumer reactions to differential pricing for services and as a precedent of price unfairness perceptions, we conduct one qualitative study and three quantitative studies. The findings provide key theoretical insights indicating that 1) dynamic pricing leads to more price confusion than simple differential pricing and 2) price confusion triggers price unfairness perceptions that increase consumers’ intentions to spread negative WOM. For frequently purchased services, the pricing tactic’s effects on intentions to spread negative WOM are based mainly on price confusion; for infrequently purchased services, the intentions to spread negative WOM are based primarily on unfairness perceptions. The major managerial insight of our findings is that dynamic pricing should be avoided or limited when there is a high likelihood of reputation damage through negative WOM among price-disadvantaged customers.

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Dynamic pricing assuming demand shifting: the alpine skiing industry

Cited by 12 publications

References 60 publications

Winning Tourism Digitalization Opportunity in the Indonesia CBT Business

Winning Tourism Digitalization Opportunity in the Indonesia CBT Business

Influence of Service Valuation and Package Cost on Market Segmentation: The Case of Online Demand for Spanish and Andorra Ski Resorts

Consumers’ Intentions to Spread Negative Word of Mouth About Dynamic Pricing for Services: Role of Confusion and Unfairness Perceptions

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