If prices can be used as a source of data , their comparison with the competition also definitely affects future cancellations . Let's see how with real data.

During the period from August 2016 to November 2017 we studied the price performance of 8 hotels (4 city hotels and 4 resort hotels ) compared to their competitive set (each consisting of 5 hotels). During this period we captured not only the best prices that each hotel had for two people, in room-only , on the Booking.com website, but also the prices for each of the 365 future days. Based on reservation data from the 8 hotels, it was possible to compare whether on the date of arrival - or on the date of cancellation - the hotel prices were better than those of their competitors. To carry out this analysis, a ratio was created whose calculation formula is ADR (Average Daily Rate) / 3rd Best Competitor Price. The result tells us that if we obtain a value equal to 1, the prices are identical; if the value is less than 1, the hotel has a lower price than the competition; if the value is greater than 1, the price is higher than competitors. What is the objective of this analysis? Understand the extent to which so-called deal-seeking customers can cancel hotel reservations based on the prices charged by their competitors.

In 6 of the 8 hotels studied, as illustrated in the image below, it can be seen that at the date of cancellation of reservations, the price that the customer had for their reservation was higher than those charged by the competitive set in the same period. The only units where this situation was not statistically significant correspond to hotels R2 and R3, and this difference can be explained in a simple way: while for the sales of the remaining 6 hotels, Online Travel Agencies (OTAs) represent more than 20% of sales, in hotels R2 and R3 this value does not reach 5%.

What can we conclude? This study emphasizes, in a simple way, the importance that hotels must give to monitoring their competitors' prices, especially when a substantial part of their distribution depends on OTAs , in order to maintain their competitiveness against the competition.

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