A Bivariate Integer Valued Allocation Model for Guest Nights In Hotels and Cottages

Umea Economic Studies Working Paper No. 547

23 Pages Posted: 7 Mar 2001

See all articles by Kurt Brannas

Kurt Brannas

University of Umea - Department of Economics

Jonas Nordstrom

University of Umea - Department of Economics

Date Written: December 11, 2000

Abstract

The number of Norwegian guest nights in Swedish hotels and cottages is studied. Aggregation of an integer-valued AR(1) model and a two-stage demand model underlies the empirical results. The parameters in the model are check-out probability, mean check-in and the probability of selecting the hotel alternative. These parameters are specified to depend on economic variables implied by demand analysis. Via the probability of selecting a hotel, the empirical results indicate a substitution towards less expensive accommodation as the Swedish price level increases. For the check-out probability, an increase in the cottage price reduces the probability for staying another night in cottage, whereas an increase in the hotel price indicates a decrease in the check-out probability for hotel.

Keywords: Integer-valued time series, demand analysis, tourism, accomodation, hotel, cottage

JEL Classification: C32, C35, C51, D12

Suggested Citation

Brannas, Kurt and Nordstrom, Jonas, A Bivariate Integer Valued Allocation Model for Guest Nights In Hotels and Cottages (December 11, 2000). Umea Economic Studies Working Paper No. 547. Available at SSRN: https://ssrn.com/abstract=255292 or http://dx.doi.org/10.2139/ssrn.255292

Kurt Brannas (Contact Author)

University of Umea - Department of Economics ( email )

Umea University
Department of Economics
SE-90187 Umea
Sweden
+46-90-786 6101 (Phone)
+46-90-772302 (Fax)

Jonas Nordstrom

University of Umea - Department of Economics ( email )

UmeƄ University
Umea, SE - 90187
Sweden

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