Sustainability and hotel room pricing strategies

Social welfare in the hospitality industry refers to the overarching efforts and initiatives aimed at promoting the well-being and satisfaction of various stakeholders within the sector. This includes not only guests but also employees, local communities, and the environment. In this paper, we consider two different economic models in the hospitality industry, where one consumer-friendly hotel competes with a for-profit hotel taking decisions on environmental corporate social responsibility and on room rates. Hotels choose environmental corporate social responsibility investments sequentially, and room rates simultaneously. We analyse the impact of their decisions on the social welfare and hotel room pricing strategies and we also do a comparison between the results obtained in both models.