Analysis of Prices of Accommodation Establishments in Kiev: Determinants, Dynamics and Parity

International Journal of Revenue Management 9(4), 221-251, 2016

37 Pages Posted: 18 Oct 2016

See all articles by Stanislav Hristov Ivanov

Stanislav Hristov Ivanov

Varna University of Management (VUM); Zangador

Kateryna Piddubna

Varna University of Management (VUM), Students

Date Written: October 18, 2016

Abstract

The paper analyses the determinants of prices of 150 accommodation establishments in Kiev, their price dynamics and rate parity across 3 distribution channels. Six hedonic pricing models are developed with data for a weekend and a weekday check-in date from hotels’ websites, Booking and Expedia. Location, category, Booking rating, chain affiliation, air-conditioning, conference rooms, number of rooms, F&B outlets and number of days before check-in have significant impacts on prices, while parking and swimming pool are not good predictors of prices. Central hotels, 5-star hotels, chain affiliated properties, those with over 100 rooms and with Booking rating above 8.0 have larger and positive percentage change in their prices than non-central, low category, independent, small and mid-sized properties with low customer rating. We find lack of rate parity across the distribution channels – prices on accommodation establishments’ websites were lower than on the OTAs’ websites. Managerial implications, limitations and directions for future research are also discussed.

Keywords: hedonic pricing, dynamic pricing, rate parity, hotel, last minute offers, revenue management, yield management, pricing strategies, Kiev, Ukraine, online travel agencies (OTAs)

Suggested Citation

Ivanov, Stanislav Hristov and Piddubna, Kateryna, Analysis of Prices of Accommodation Establishments in Kiev: Determinants, Dynamics and Parity (October 18, 2016). International Journal of Revenue Management 9(4), 221-251, 2016. Available at SSRN: https://ssrn.com/abstract=2854073

Stanislav Hristov Ivanov (Contact Author)

Varna University of Management (VUM) ( email )

13 Oborishte Street
Varna, 9000
Bulgaria
+359 898 680713 (Phone)

HOME PAGE: http://www.vumk.eu

Zangador ( email )

Varna, 9010
Bulgaria

HOME PAGE: http://www.zangador.eu

Kateryna Piddubna

Varna University of Management (VUM), Students ( email )

13 Oborishte Street
Varna, 9000
Bulgaria

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