Agglomeration and competition dynamic effects on hotels pricing strategies in Venice
研究了酒店预订周期中集聚效益与竞争负效应的交互作用，发现竞争效应呈U形，在最后时刻和最早预订时最强，而集聚正效应随预订期缩短而增强，即使在疫情危机下仍对价格有微弱正面影响。
Many studies highlight the significance of agglomeration and spatial competition as factors influencing dynamic pricing strategies in hospitality. Our research advances the literature by examining the interaction between agglomeration benefits and competition drawback along the booking curve. To this aim, we propose a two-step Structural Vector Autoregressive (SVAR) approach that accounts for time-variant factors such as daily seasonality, room quality, and rate fences. Our findings reveal a non-linear “U-shaped” pattern of negative competition effects along the booking window, with stronger impacts observed in last-minute and very early bookings. The positive externalities associated with agglomeration increased as the advance booking period shortened. Even in times of crisis, such as during COVID-19, clustering continues to exert a slightly positive effect on rates, particularly for last-minute bookings. Overall, our research contributes to the literature on hotel revenue management and underscores the importance of integrating spatial factors into dynamic pricing models to support decision-making.