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This study uses the game theory to find a Nash equilibrium of price elasticities of hotel demand in the United States before and during the COVID-19 pandemic to interpret the decrease in hotel unemployment rate. The sample selected is the Oahu, Hawaii market due to its higher room rate and higher unemployment rate compared to those in the mainland US. Findings indicate that to increase hotel revenue and decrease unemployment rate, the price elasticity of hotel demand in the mainland US would be higher than the one in Oahu, Hawaii. While the government has built more value into hotels by financially supporting unemployed hotel employees, established hotel brands have maintained their excellent service for their guests during the pandemic.

Economics in game theory for hotel unemployment