Applying Game Theory and Time Series in Smith Travel Accommodation Resort (STAR)

Authors : Xuan TRAN, Ni Putu Kumala DEWI, Zachary JENKINS, Duy TRAN, Ngoc VO

Pages : 140-161

View : 10 | Download : 8

Publication Date : 2016-10-01

Article Type : Research Paper

Abstract :Although Smith Travel Accommodations Report insert ignore into journalissuearticles values(STAR); benchmarks hotel performance against its competitive aggregate and local markets, hotel managers consider STAR as a reference document rather than a strategy model for hotel competition. Recent research report managers prefer less information to use it as clues for a decision rather than more information not to be able to make a decision. It is imperative for hotel managers to use STAR as a clue for the competition. Limited research has focused on techniques to build a clue for STAR as a practice strategy. The present study has built two matrices by STAR indices. After that, game theory strategies were conducted to forecast the outcomes whenever hotel mangers change price. A sample of hotel guests who stayed in seven top hotel destinations in the U.S. during the ten-year period was selected in the scenario with two assumptions: insert ignore into journalissuearticles values(1); there are two players in the U.S. meeting business: Player 1 includes hoteliers in Washington DC, Virginia, and Maryland and player 2 includes hoteliers in Orlando, Los Angeles, Chicago, and New York and insert ignore into journalissuearticles values(2); customers in a hotel of player 1 prefer staying in the hotel of player 1 rather than staying in the hotel of player 2 and vice versa. Findings indicate that two matrices have provided hoteliers with simple clues of different strategies in each month during the year to maximize their revenue.
Keywords : Game Theory, STAR, ADR, RevPAR