Modeling Price Elasticity for Occupancy Prediction in Hotel Dynamic Pricing. (arXiv:2208.03135v2 [econ.GN] UPDATED)

Demand estimation plays an important role in dynamic pricing where the
optimal price can be obtained via maximizing the revenue based on the demand
curve. In online hotel booking platform, the demand or occupancy of rooms
varies across room-types and changes over time, and thus it is challenging to
get an accurate occupancy estimate. In this paper, we propose a novel hotel
demand function that explicitly models the price elasticity of demand for
occupancy prediction, and design a price elasticity …

arxiv elasticity modeling prediction price pricing