Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
11005068 | Tourism Management | 2019 | 11 Pages |
Abstract
This study sought to assess customers' willingness to pay for a wide variety of characteristics and attributes of hotels in Portugal's Algarve region. After collecting nearly all the information available on TripAdvisor for hotels in this region, a hedonic pricing model was developed using a database of 9992 cases. The results suggest that - after standardisation - the most important variable shaping Algarve hotel room rates is the previous day's prices. When associated with a family-friendly hotel, star category and services have a greater value than beaches or golf courses do. Customers also appreciate some types of hotels, such as boutique, quaint or trendy hotels, but view others negatively, such as family-friendly or business hotels. Only the specific location of Falesia Beach adds value, although the Algarve is a desirable destination overall. Both destination and hotel managers can use the proposed method to analyse data for their region on customers' propensity to pay.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Strategy and Management
Authors
Ismael P. Soler, German Gemar, Marisol B. Correia, Francisco Serra,