Year of Graduation
Pricing on the Hospitality Market
The present study examines the determinants of hotel room prices in 11 European cities over the 10 month period within the hedonic price theory framework. Log-linear regressions based on an extensive sample from booking.com were used to quantify marginal effects of different hotel quality aspects (aggregated in hotel star rating and guest review rating), hotel location, free breakfast and free cancellation options. Demand fluctuations were considered in three different ways to explain seasonal price variability, which resulted in a substantial “date – residual” plot smoothing, but also multicollinearity. Separate models for each city were also estimated due to certain cross-country differences (e.g. diverse star rating criteria, seasonal peculiarities). The explanatory power of the presented models is in line with those of other studies based on smaller samples.