D 2019

Maximizing Revenue in the Company Using Price and Its Elasticity – Empirical Application

PETŘÍČEK, Martin

Basic information

Original name

Maximizing Revenue in the Company Using Price and Its Elasticity – Empirical Application

Authors

PETŘÍČEK, Martin

Edition

Proceedings of the 33rd International Business Information Management Association Conference, p. 291-297, 7 pp. 2019

Other information

Language

English

Type of outcome

Stať ve sborníku

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

electronic version available online

Organization unit

University College Prague – University of International Relations and Institute of Hospitality Management and Economics, Ltd.

ISBN

978-0-9998551-2-6

Keywords in English

demand, price elasticity, price optimization

Tags

International impact, Reviewed
Změněno: 23/6/2019 12:36, doc. Ing. Martin Petříček, Ph.D.

Abstract

V originále

The submitted contribution focuses on presenting the use of price elasticity of demand to optimize revenue of the selected business (in the field of accommodation service). All this with the use of Monte Carlo probability simulation. The contribution presents a methodological approach of log-log regression analysis to determine the coefficient of price elasticity of demand, which is then used in the whole optimization process of the company. The output of the entire contribution is an application of introduced issues that led to increased revenue based on dynamic price management. With the use of price optimization process presented in this paper, the selected company is able to increase the revenue of the company by 7 % per day.