Abstract
This paper introduces the concept of barometric price leadership to the hotel sector, where a leading hotel sets prices that reflect demand and supply trends, guiding other hotels in the market to set their prices. While the significance of competitor-based pricing has been rec- ognized, the strategic influence of such price leaders on rivals' pricing has not been thor- oughly examined. This conceptual study delves into the existing literature to discuss the underpinnings and implications of such leadership, illustrating how prices portray vital mar- ket information. The study argues for the recognition and strategic importance of barometric price leaders in guiding competitors' pricing strategies, emphasizing the crucial role of mar- ket intelligence in revenue management practice. Establishing this conceptual groundwork suggests that future research is poised to offer implications for practitioners, highlighting how such price leadership could play a pivotal role in competitive hotel operations.
Keywords
barometric price leader, price leader, competition-based pricing, market infor- mation, hotel competition, revenue management
Recommended Citation
Lee, Sung W.; Quadri-Felitti, Donna; Sharma, Ami; and Lee, Seoki
(2025)
"Market Signals and Price Setting: Unveiling Barometric Price Leader in the Hotel Sector,"
Journal of Hospitality Financial Management: Vol. 33:
Iss.
2, Article 4.
Available at:
https://stars.library.ucf.edu/jhfm/vol33/iss2/4
