he paper deals with the development of competition and segmentation of demand for hotel services in Prague and its impact on pricing in 2009-2012. It focuses on the analysis of the offered capacity of accommodation facilities and the number and length of overnight stays. The paper also analyzed the reaction of Prague hotels to changes in demand in the years and their impact on the competitive environment. One of the fundamental problems of pricing is a method of obtaining information about the market situation, especially on competitive prices. This paper therefore focuses on the analysis of the collection of information on prices and their use in business strategy, business entities.