A predictive model of revenue per available room in the Eastern Mediterranean using bilateral exchange rates
by Christopher M. Hannum; Kerem Yavuz Arslanli
International Journal of the Built Environment and Asset Management (IJBEAM), Vol. 1, No. 4, 2015

Abstract: In an era of exchange rate volatility, performance of hospitality industry assets may be highly sensitive to currency shocks which affect international demand, such as the fall in the value of the Russian Ruble in late 2014. We aim to create a systematic and meaningful predictive model to give insight for managers and investors in the hospitality industry in this region regarding which bilateral exchange rates to watch most closely and particularly the timing of anticipated effects. This study will examine the relationship between Revenue per Available Room (RevPAR), the key measure of operational performance in the hospitality industry, and bilateral exchange rates in eight countries of the Balkans and Eastern Mediterranean. The study methodology follows a LASSO penalised regression model for simultaneous and systematic selection of variables and lag lengths and estimation of model parameters.

Online publication date: Tue, 01-Mar-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of the Built Environment and Asset Management (IJBEAM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com