A Hedonic Pricing Analysis of Hotel Prices in Bangkok Using a Flexible Functional Form

บทคัดย่อ

In spite of the serve flooding that occurred in 2011, Bangkok still experienced an increase of 18.4% in international tourist visitors, and was voted as the best city in the world in 2012. As a consequence, it has seen an upward rise in the supply of new hotel rooms and high rates of hotel occupancy. This study aims to examine the most influential hotel characteristics affecting room rates in Bangkok. A hedonic pricing study, using two different linear Box-Cox transformation models, is based on online data accounting for 224 hotels in Bangkok.

Our results show that a log-linear model is an appropriate functional form after having the linear Box-Cox transformation analysis. Of hotel characteristics, the hotel chain was the most influential attribute affecting the hotel room rate in Bangkok. Chain hotels in Bangkok charged room prices at 31% higher than the independent ones. Any room provided with a complimentary breakfast was able to charge a price 16% more than a room without it. Both hotel room size and the distance to the center of Bangkok were also characteristics influencing the hotel room rates in Bangkok.