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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

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