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

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)