Finance and Economics Vision
Volume 7 nos.1 July 2024 ISSN 2755-3272
In this study, an economic model is employed to provide a comprehensive elucidation of the underlying rationale behind hotel business housekeeping strategies. A specialised screening model has been constructed to address this business scenario. When housekeeping costs are low, hotels should offer it, with customer incentives below the minimum value they would assign to the service. When costs are high, hotels should encourage no housekeeping with incentives above the maximum value for it. This creates a separating equilibrium, allowing hotels to cater to individual preferences. This research is unique in its analysis of hotel housekeeping services and pricing strategies within information economics, an underexplored context.
Key words: Hotel; Housekeeping; Screening Model; Subgame perfect equilibrium, Sustainability strategies.
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