Predicting random level and seasonality of hotel prices. A structural equation growth curve approach

Germà Coenders (), Josep Maria Espinet and Marc Saez

No 1, Working Papers of the Department of Economics, University of Girona from Department of Economics, University of Girona

Abstract: This article examines the effect on price of different characteristics of holiday hotels in the sun-and-beach segment, under the hedonic function perspective. Monthly prices of the majority of hotels in the Spanish continental Mediterranean coast are gathered from May to October 1999 from the tour operator catalogues. Hedonic functions are specified as random-effect models and parametrized as structural equation models with two latent variables, a random peak season price and a random width of seasonal fluctuations. Characteristics of the hotel and the region where they are located are used as predictors of both latent variables. Besides hotel category, region, distance to the beach, availability of parking place and room equipment have an effect on peak price and also on seasonality. 3-star hotels have the highest seasonality and hotels located in the southern regions the lowest, which could be explained by a warmer climate in autumn.

Keywords: Hedonic functions; hotel pricing; growth curve models; random-effect models; structural equation models (search for similar items in EconPapers)
JEL-codes: C33 L11 L83 (search for similar items in EconPapers)
Date: 2001-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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