D 2019

MEASURING PRICE ELASTICITY AND ITS APPLICATION INTO THE REVENUE OPTIMIZATION PROCESS

PETŘÍČEK, Martin and Štěpán CHALUPA

Basic information

Original name

MEASURING PRICE ELASTICITY AND ITS APPLICATION INTO THE REVENUE OPTIMIZATION PROCESS

Name (in English)

MEASURING PRICE ELASTICITY AND ITS APPLICATION INTO THE REVENUE OPTIMIZATION PROCESS

Authors

PETŘÍČEK, Martin and Štěpán CHALUPA

Edition

Prague, 11th INTERNATIONAL CONFERENCE PROCEEDINGS - HOSPITALITY, TOURISM AND EDUCATION, p. 87-94, 8 pp. 2019

Publisher

Institute of Hospitality Management in Prague 8.

Other information

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

978-80-87411-87-2

Keywords in English

Demand, Elasticity, Price

Tags

International impact, Reviewed
Změněno: 28/10/2019 10:38, doc. Ing. Martin Petříček, Ph.D.

Abstract

V originále

The paper focuses on various possibilities of measuring price elasticity of demand with the application of log-log regression analysis. The elasticity measured can be than an input for the optimization process. The critical element of this optimization is the value of the coefficient of price elasticity, which was in the given contribution (for the selected accommodation facility) to the value -0.297, which indicates a price inelastic demand. This approach also has some limitations. It assumes a regression function that is linear in parameters, and also it is only a simple regression. Despite this fact, the results are comparable to other approaches.

In English

The paper focuses on various possibilities of measuring price elasticity of demand with the application of log-log regression analysis. The elasticity measured can be than an input for the optimization process. The critical element of this optimization is the value of the coefficient of price elasticity, which was in the given contribution (for the selected accommodation facility) to the value -0.297, which indicates a price inelastic demand. This approach also has some limitations. It assumes a regression function that is linear in parameters, and also it is only a simple regression. Despite this fact, the results are comparable to other approaches.