The Number of Occupied Hotel Rooms: A Time Series Model that Accounts for Constrained Capacity and Prices

Umea Economic Studies Working Paper No. 559

14 Pages Posted: 2 Jun 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: May 22, 2001

Abstract

The daily number of occupied hotel rooms in three large Swedish cities is modelled by an integer-valued and binomial autoregression. The model includes the capacity constraint and price variables are incorporated through the parameters of the model. The model implies a duration of hotel visit and an occupancy probability. We find that a 10 percent increase in the price level shortens the median duration of a hotel visit by approximately 6 percent during weekends and 8 percent during weekdays.

Keywords: Binomial, autoregression, estimation, demand analysis, rationed, price effect

JEL Classification: C22, C25, C51, D21, L83

Suggested Citation

Brannas, Kurt and Nordstrom, Jonas, The Number of Occupied Hotel Rooms: A Time Series Model that Accounts for Constrained Capacity and Prices (May 22, 2001). Umea Economic Studies Working Paper No. 559. Available at SSRN: https://ssrn.com/abstract=270801 or http://dx.doi.org/10.2139/ssrn.270801

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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