Title: An empirical analysis of Lisbon hotel room rates determinants

Authors: Conceição Gomes; Luís Lima Santos; Cátia Malheiros

Addresses: CiTUR – Centre for Tourism Research, Development and Innovation, Polytechnic Institute of Leiria, School of Tourism and Maritime Technology, Portugal ' CiTUR – Centre for Tourism Research, Development and Innovation, Polytechnic Institute of Leiria, School of Tourism and Maritime Technology, Portugal ' CiTUR – Centre for Tourism Research, Development and Innovation, Polytechnic Institute of Leiria, School of Tourism and Maritime Technology, Portugal

Abstract: This study investigates the impact of several characteristics and attributes of hotels on room rates in one of the most visited cities in Europe. The research allows to compare, in a transparent way, findings of previous studies and promotes added value using for the first time the hedonic price model (HPM) in the hospitality industry in Lisbon, Portugal. Although hotel room price determinants have already been studied, in this study it was introduced physical variables and location variables all together, as well as it was added the variables relating to certain services offered. A significant impact on hotel prices by official stars and OTAs punctuation has been confirmed. In line with previous studies, an additional star and belonging to a chain allow the hotel to increase the price. In addition, other attributes, such as the distance of the hotel from the airport and the centre, have impact on hotel prices. The evidence that the existence of a spa and a pool influences hotel prices will support stakeholders in investment and management decision.

Keywords: hedonic price model; hotels; Lisbon; pricing; room rates.

DOI: 10.1504/IJPM.2021.115016

International Journal of Procurement Management, 2021 Vol.14 No.3, pp.380 - 399

Received: 18 Nov 2019
Accepted: 17 Jan 2020
Published online: 14 May 2021 *

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