SELECTED WORKS
of Jaime Luque
Working Papers
Artificial Intelligence and Dynamic Pricing Technology Adoption: Evidence from the Hospitality Property Sector
(2022)Jaime Luque
Michael Abel
Michael Abel
ABSTRACT
We present large-scale evidence on the impact of the adoption of a new dynamic pricing technology by the largest hostel group worldwide. The new technology replaces the previous human-based backward-looking grid pricing model by incorporating Artificial Intelligence and machine learning techniques to estimate future customers willingness to pay and set prices. We extend the Difference-in-Differences estimator by exploiting variation in the timing of technology adoption by different units. We and statistically signicant and economically sizable positive effects of adopting the new technology on revenue and occupancy, and an increased price dispersion at the tails of the occupancy distribution.
DISCIPLINES
Real Estate
PUBLICATION DATE
January, 2022
CITATION INFORMATION
Jaime Luque and Michael Abel. "Artificial Intelligence and Dynamic Pricing Technology Adoption: Evidence from the Hospitality Property Sector" (2022)
Available at: http://works.bepress.com/luque/73/
CREATIVE COMMONS LICENSE
Creative Commons License This work is licensed under a Creative Commons CC_BY-NC-ND International License.