Hedonic Estimates of Lodging Rates in the Four Corners Region

Abstract

In many industries, insufficient attention has been given to how location affects prices. One such industry is lodging. This article examines room rates for budget hotels and motels in four southwestern U.S. states during 1998. Using hedonic analysis, published prices are estimated for nearly 600 establishments belonging to six national chains. OLS regression uncovers how site attributes (pools, spas, and complimentary breakfasts) and situation attributes (temperature, interstate location, and specialization of the local economy) affect room rates. Prices for overnight stays during summer and winter seasons are examined. Differential effects of site and situation attributes on price heterogeneity are discussed.

Nonmarket Valuation of Cultural and Environmental Impacts of Sustainable City Tourism in Vienna, Austria

“…Contrarily, the stated preference surveys draw the "data from people's responses to hypothetical questions rather than from observations of real-world choices" [2, p. 25]. Typically, in tourism research [12]- [13], the advertised accommodation prices are regressed on a set of attributes.…”

Hedonic Hotel Pricing and Quality Signals: Which are the Market Value Drivers in a Transition Phase?

“…Carvell and Hervin (1990) and Coenders, Espinet and Saez (2003) stress the importance of hotel attributes. Although Espinet, Saez, Coenders and Fluiva (2003) list the relevant features of the hotel service provisions, the analysed studies indicate different roles played by some amenities (Monty and Skidmore, 2003;Thrane, 2007, White andMulligan, 2002). White and Mulligan (2002) find a positive effect on room prices, while Thrane (2007) identifies a moderate effect.…”

“…Although Espinet, Saez, Coenders and Fluiva (2003) list the relevant features of the hotel service provisions, the analysed studies indicate different roles played by some amenities (Monty and Skidmore, 2003;Thrane, 2007, White andMulligan, 2002). White and Mulligan (2002) find a positive effect on room prices, while Thrane (2007) identifies a moderate effect. H 1a : A premium price links to a bundle of services, as the presence of each amenity has a positive effect on price.…”

“…The advent of a global lodging industry has been analysed in terms of the effect of corporate affiliation on hotel prices. Brand strategies' magnitude in explaining a premium price was estimated for hotels (White and Mulligan, 2002;Thrane, 2007) and franchised motels (Wu, 1999). A brand name implies the creation of a standardized product or production process (see Klein and Saft, 1985).…”

The Role and Importance of Private Accommodation Components: Evidence from Urban Mediterranean Tourism Destination

“…Besides few authors (Monty and Skidmore, 2003;Fleischer and Tchetchik, 2005;Hamilton, 2007;Juaneda et al, 2011;Saló and Garriga, 2011;Portolan, 2013) who investigated the impact of components on price in different forms of private accommodation most of them researched hotel accommodation (Hartman, 1989;Carvel and Herrin, 1990;White and Mulligan, 2002;Espinet et al, 2003;Thrane, 2007;Hamilton, 2007;Andersson, 2010;Hung et al, 2010;Chen and Rothschild, 2010;Kushi and Caca, 2010). There is no author who has researched the impact of components in private accommodation units on occupancy rate.…”