Abstract
A number of valued attributes determine the room rates that hotels charge. These attributes include not only room quality characteristics, but also access to various shared hotel facilities, service quality, and access to amenities beyond the hotel itself. Using a hedonic price function approach, this paper reports estimated implicit prices for hotel room attributes in Singapore. Real transaction prices are regressed against objective attributes and consumer perceptions, as reported by an on-line travel agency. Most objective characteristics are significant in all functional specifications, and consumer perceptions explains much of the variability within a given star-rating (3, 4 or 5) of the hotel.
Similar content being viewed by others
References
Andersson DE (2000) Hypothesis testing in hedonic price estimation—on the selection of independent variables. Ann Reg Sci 34: 293–304
Andersson ÅE, Andersson DE (2006) The economics of experiences, the arts and entertainment, Chap. 7. Edward Elgar, Cheltenham
Barzel Y (1989) Economic analysis of property rights. Cambridge University Press, Cambridge
Becker GS (1976) The economic approach to human behavior. Chicago University Press, Chicago
Cheshire PC, Sheppard SC (1995) On the price of land and the value of amenities. Economica 62: 247–267
Dubin RA, Sung CH (1990) Specification of hedonic regressions: non-nested tests on measures of neighborhood quality. J Urban Econ 27: 97–110
Goodman AC (1989) Topics in empirical housing research. In: Muth RF, Goodman AC (eds) The economics of housing markets. Harwood, Chur
Heikkilla E, Dale-Johnson D, Gordon P, Kim JI, Peiser RB, Richardson HW (1989) What happened to the CBD-distance gradient: land values in a polycentric city. Environ Plan A 21: 221–232
Lancaster K (1966) A new approach to consumer theory. J Political Econ 74: 132–157
Palmquist RB (1983) Estimating the demand for air quality from property values studies: further results. Working paper, North Carolina State University, Raleigh
Palmquist RB (1991) Hedonic methods. In: Braden JB, Kolstad CD (eds) Measuring the demand for environmental quality. Elsevier Science Publishers, Amsterdam
Rosen S (1974) Hedonic prices and implicit markets: product differentiation in pure competition. J Political Econ 82: 34–55
Sheppard SC (1999) Hedonic analysis of housing markets. In: Cheshire PC, Mills ES (eds) Handbook of regional and urban economics (1595–1635), vol 3. Elsevier Science Publishers, Amsterdam
Webster C, Lai LWC (2003) Property rights, planning and markets: managing spontaneous cities. Edward Elgar, Cheltenham
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Andersson, D.E. Hotel attributes and hedonic prices: an analysis of internet-based transactions in Singapore’s market for hotel rooms. Ann Reg Sci 44, 229–240 (2010). https://doi.org/10.1007/s00168-008-0265-4
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00168-008-0265-4