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
Date Written: May 22, 2001
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
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