Consumer perception of price fairness and dynamic pricing: Evidence from Booking.com

The extensive use of online travel agencies by hotels and their guests has amplified the number consumers who directly experiment, appraise, evaluate how dynamic pricing is implemented hotels. Using data retrieved from an agency, we trace room rates change according to booking day, week stay, type; build two measures consumer perception price fairness based on customer evaluation stay at hotel. We find that a negative effect fairness: differences in rate among weeks types are major drivers falls fairness, while changes during period more tolerated consumers.