Effect of Price Instability on Hotel Profitability

Chen, Chiang-Ming; Chang, Kuo-Liang

doi:10.5367/te.2012.0180

Cited by 26 publications

(19 citation statements)

References 23 publications

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“…While there is a paucity of investigations that include square footage of room, many have included hotel-level characteristics such as "hotel size" (often proxied by the number of hotel roomse.g. see Balaguer and Pernías, 2013;Becerra et al, 2013;Chen and Chang, 2012;Hung et al, 2010;Mohammed et al, 2019;Zhang et al, 2011b) and "hotel quality," proxied as a star rating (Andersson, 2010;Bull, 1994;Espinet et al, 2003;Israeli, 2002;Kuminoff et al, 2010;Melis and Piga, 2017;Rodríguez-Algeciras and Talón-Ballestero, 2017;Sánchez-Pérez et al, 2019;Thrane, 2005). We include both of these hotel-level characteristics here and expect their effect to be positive.…”

Section: Literature Review Empirical Research On Hotel Locationmentioning

confidence: 99%

The effect of the Las Vegas Strip on hotel prices: A hedonic approach

2019

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The authors investigate the effect of location on the nightly hotel room rates charged in Las Vegas. Using a hedonic estimation approach, the authors control for room amenities and hotel and time characteristics. Including 6087 hotel room nights for hotels located near the Las Vegas Strip in two different years (2012 and 2017), the authors estimate the relationship between hotel location and nightly room rates. Consistent with prior investigations, the authors find strong evidence for the effect of location, amenities, and day of week on hotel prices, with a “Strip premium” of 40.21% (US$106.85 at the mean hotel price) for hotels located within 0.25 miles of the Las Vegas Strip compared to hotels beyond 0.75 miles of the Strip. They estimate a Center-of-Strip premium of 70.23% (US$186.61 at the mean hotel price) for hotels located within 0.75 miles, 36.89% (US$98.01) for the next 0.75 miles, and 18.89% (US$50.18) for the next 0.75 miles, compared to hotels beyond 2.25 miles.

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Section: Literature Review Empirical Research On Hotel Locationmentioning

confidence: 99%

The effect of the Las Vegas Strip on hotel prices: A hedonic approach

2019

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“…However, there has not been much research on the relationship between prices and the online reputation of accommodations, measured in different ways (e.g., quality of service, value, and added value). The research on prices in tourism has focused on analyzing different aspects, such as price asymmetry (Lee and Jang 2013), the identification of factors influencing price evolution (Lee 2011), the effect of discounts (Croes and Semrad 2012;Blal and Graf 2013), dynamic pricing strategies (Abrate et al 2012), the impact of oil prices on tourism (Lennox 2012), the relationship between hotel room prices and location (Zhang et al 2011), the impact of advertising on pricing and profit in the tourism supply chain (Jena and Jog 2017), the relationships with the category of lodgings (Israeli 2012;Tanford et al 2012), price elasticity of the lodging demand depending on advertising , customers' price perceptions (Kleinsasser and Wagner 2011;Masiero and Nicolau 2012b), pricing determinants in hotels (Hung et al 2010;Espinet et al 2003), the competitive positioning of lodgings , the importance of price in hotel selection (Lockyer 2005), and the relationship between the room rate and lodging performance (Qu et al 2002;Enz et al 2009;Chen and Chang 2012;. Jena and Jog (2017) regard the seasonality of tourist markets as a decisive factor in the price variable.…”

Section: Literature Reviewmentioning

confidence: 99%

Tourism Destination Management

Rodríguez‐Díaz¹,

Espino‐Rodríguez²

2019

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In order to capture the value of cultural creativity, this study explored regional cultural creativities with different creative forms to understand how people interpret and interact with various regional cultural creative images. This was done by analyzing the abstract (performance) type of cultural creativity and the figurative (commodity) type of cultural creativity, in order to understand how existing regional cultural creativities operate information threads in social media, and how the different forms of content may lead to different levels of participation and feedback. The Cloud Gate Dance Theater can be taken as an example of an abstract cultural creation (performance type), and Green-in-hand as an example of a figurative cultural creativity (commodity type). In this study, all user page content for the period 1 January 2011, to 31 December 2018, and the number of user comments for each post were analyzed, for a total of 4784 posts. Computer science, data mining, big data, and social network analysis were combined to verify the findings of the analyses. Through an application programming interface (API), data and information in social media is extracted. Then data filtering, storage, and analysis is performed with meaningful information extracted for interpretation and for use in text mining to explore the relationship with the public based on content attributes. This study first verifies that the regional image is consistent with the social image location. Second, the information cues results found that information cues could be organized into region personality through any direct or indirect contact. Third, emotional clues can evoke emotions and self-expression, which is seen as an important clue to region emotions. In addition, this study also provides a conceptual framework for understanding how different forms of information, in regards to social management of existing regional cultural creativities, leads to varying levels of participation. Understanding the form of information is a key factor in the acceptance of information by the public. It is a reminder for cultural and creative institutions of the importance of text and images, and of figurative and abstract information planning in social content. In order to improve the competitiveness of the destination, using content interaction through social media to create and enhance a strong brand image is important.

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“…Chen et al (2011) examine the link between demand uncertainty and product variety, and their empirical findings support Carlton and Dana's (2008) theoretical prediction: higher degree of demand uncertainty leads to greater product variety. Chen and Chang (2012) find that when demand uncertainty takes the form of instability in product prices, price instability has a negative effect on hotels' profitability. Chen and Yeh (2012) investigate the relationship between uncertain demand and the failure rates of hotels, and they show that uncertain demand increases the likelihood of failure.…”

Section: Introductionmentioning

confidence: 97%