The Number of Occupied Hotel Rooms: A Time Series Model that Accounts for Constrained Capacity and Prices

Kurt Brännäs () and Jonas Nordström ()
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Jonas Nordström: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden

No 559, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: The daily number of occupied hotel rooms in three large Swedish cities is modelled by an integer-valued and binomial autoregression. The model includes the capacity constraint and price variables are incorporated through the parameters of the model. The model implies a duration of hotel visit and an occupancy probability. We find that a 10 percent increase in the price level shortens the median duration of a hotel visit by approximately 6 percent during weekends and 8 percent during weekdays.

Keywords: Binomial; autoregression; estimation; demand analysis; rationed; price effect (search for similar items in EconPapers)
JEL-codes: C22 C25 C51 D21 L83 (search for similar items in EconPapers)
Date: 2001-05-23

Published in Studies in Nonlinear Dynamics and Econometrics, 2004.

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