Worldwide hedonic prices of subjective characteristics of hostels.

An overnight at an accommodation establishment might be understood as a package of several different items. Since they are not traded separately in the market, their values for the consumer are difficult to measure. On the other hand, this information is be useful for managers to develop better strategies regarding the mix of services and facilities of their establishments. Analytical decomposition of total prices by different characteristics can be done through hedonic price techniques. In this paper, hedonic prices are used to analyze the impact of different characteristics on prices of hostels. Accommodation prices of more than 8000 hostels worldwide are explained by their characteristics as rated by guests. Results show that the most relevant characteristics are cleanliness, location and facilities.

[1]  Modest Fluvià,et al.  Managing tourism products and destinations embedding public good components: a hedonic approach. , 2011 .

[2]  Andrea Baranzini,et al.  Hedonic methods in housing markets : pricing environmental amenities and segregation , 2010 .

[3]  Catalina Juaneda,et al.  Pricing the Time and Location of a Stay at a Hotel or Apartment , 2011 .

[4]  C. Tisdell,et al.  The Impact of Noosa National Park on Surrounding Property Values: An Application of the Hedonic Price Method , 2002 .

[5]  J. Alegre,et al.  Examining the Market Structure of the German and UK Tour Operating Industries through an Analysis of Package Holiday Prices , 2003 .

[6]  M. Falk.  A hedonic price model for ski lift tickets , 2008 .

[7]  J. Hamilton,et al.  Coastal landscape and the hedonic price of accommodation , 2007 .

[8]  M. Skidmore,et al.  Hedonic Pricing and Willingness to Pay for Bed and Breakfast Amenities in Southeast Wisconsin , 2003 .

[9]  Aliza Fleischer,et al.  Does rural tourism benefit from agriculture , 2005 .

[10]  Inka Havrila,et al.  An Analysis of Restaurant Characteristics and Meal Prices in Melbourne, Australia , 1996 .

[11]  Jeffrey M. Wooldridge,et al.  Solutions Manual and Supplementary Materials for Econometric Analysis of Cross Section and Panel Data , 2003 .

[12]  Christer Thrane.  Hedonic Price Models and Sun-and-Beach Package Tours: The Norwegian Case , 2005 .

[13]  K. Lancaster.  A New Approach to Consumer Theory , 1966, Journal of Political Economy.

[14]  W. Kim,et al.  Determinants of a restaurant average meal price: An application of the hedonic pricing model , 2014 .

[15]  SooCheong (Shawn) Jang,et al.  Room Rates of U.S. Airport Hotels: Examining the Dual Effects of Proximities , 2011 .

[16]  E. Ariza,et al.  The effects of beach characteristics and location with respect to hotel prices , 2011 .

[17]  Germà Coenders,et al.  Effect on Prices of the Attributes of Holiday Hotels: A Hedonic Prices Approach , 2003 .

[18]  Jack E. Triplett,et al.  Handbook on Hedonic Indexes and Quality Adjustments in Price Indexes: Special Application to Information Technology Products , 2006 .

[19]  Ching-Fu Chen,et al.  An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei , 2010 .

[20]  S. Rosen.  Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition , 1974, Journal of Political Economy.

[21]  M. Fluvià,et al.  Public Goods in Tourism Municipalities: Formal Analysis, Empirical Evidence and Implications for Sustainable Development , 2007 .

[22]  J. Hausman.  Specification tests in econometrics , 1978 .

[23]  M. Rambonilaza.  Labelling and Differentiation Strategy in the Recreational Housing Rental Market of Rural Destinations: The French Case , 2006 .

[24]  Luke Brander,et al.  The recreational value of coral reefs: A meta-analysis , 2007 .