Do service providers adopting market segmentation need cooperation with third parties?

Fei Du · Feng Yu Yang · Liang Liang · Mingming Yang

23 citations0/0 files storedInternational Journal of Contemporary Hospitality Management

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Supply Chain and Inventory Management Consumer Market Behavior and Pricing Aviation Industry Analysis and Trends

Abstract

Purpose This study aims to analyze the tradeoff between two potential marketing strategies for service providers, namely, market segmentation on the basis of reservation lead time and cooperation with third parties. Design/methodology/approach This paper proposes an optimization model to describe market segmentation strategy after cooperating with third parties by taking hotels for example. Findings The results show that the profitability of adopting two strategies simultaneously is lower than that with market segmentation alone under some cases, which is relevant with attributes of travel agencies, such as switch rate and market share. Research limitations/implications This study indicates that cooperation with third parties has a negative impact on profitability of hotels using market segmentation in some cases. However, randomness of demand, customer loyalty and existence of cancellation should be considered in further research. Practical implications In an e-commerce era, hotels with market segmentation based on reservation lead time, are not required to cooperate with third parties under a number of situations (e.g. high switch rates and small market sizes of travel agencies). In addition, hotels should revise the segmentation strategy based on the change rate of potential demand of individual customers. Furthermore, hotels should enhance customer loyalty, strengthen cooperation with travel agencies that possess large market shares or small switch rates. Originality/value The study preliminarily formulates the optimal market segmentation strategy on the basis of reservation lead time after cooperating with third parties, which contributes to the revenue management.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 23 citations exist upstream.

References

1994Optimal Dynamic Pricing of Inventories with Stochastic Demand over Finite Horizons 1978Issues and Advances in Segmentation Research 1997A Multiproduct Dynamic Pricing Problem and Its Applications to Network Yield Management 1987The Price Bundling of Services: A Normative Framework 2000Optimal Dynamic Pricing for Perishable Assets with Nonhomogeneous Demand 2005Special Issue Papers: Forecasting and control of passenger bookings 2011Cooperation among prominent actors in a tourist destination 2008Dynamic Pricing in the Presence of Strategic Consumers and Oligopolistic Competition

Cited by

2021Model of Price Optimization as a Part of Hotel Revenue Management—Stochastic Approach 2021Food delivery application user segmentation in the mobile marketing world in China

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.