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Advisor(s)
Abstract(s)
Portuguese tourism has had a strong growth in the last few years, being Lisbon one of the cities that
contributed to that boom. Indeed, Lisbon was one of the European cities that experienced a greater increase
in international arrivals lately.
According to the hedonic price method, a price of a good is related with the characteristics or the services
it provides. Within this framework, the aim of this study, is to examine the effect of different hotel services
and room attributes on hotel room rates in the city of Lisbon.
Using the hedonic pricing method, hotel characteristics are decomposed and analyzed, giving us the
perception of the impact of each hotel service and attributes on the room rates and the people’s willingness
to pay for this. The independent variables were selected based on the literature review, between physical
characteristics, services and location for 124 hotels in Lisbon city, from 3 to 5 stars. Moreover, consumer
rating and value for money were considered.
The results suggest that consumers rating, star rating, room size, business centre and free internet are
significant variables to explain differences in predicted prices in Lisbon city. Another influential factor on
Lisbon room rates is the distance from the hotel to the city centre, Rossio, and to the airport.
The results enable to identify the attributes that are important to consumers and hoteliers and to which
extent. This information can be used by hotel managers to define a price strategy, which attributes and
services need to be upgraded and therefore be helpful in new investment decisions.
Description
Keywords
Hotels Room rates Hotel characteristics Hedonic pricing Lisbon
Citation
Publisher
Instituto Politécnico do Cávado e do Ave