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Finance and Economics Vision

Volume 7 nos.1 July 2024 ISSN 2755-3272

To change linen or go green : Hotel Housekeeping

Service Offering as a Screening problem

  • 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.

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  • 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.