An Application of Hedonic Pricing Analysis to the Case of Hotel Rooms in Taipei

Abstract

This study investigates the impact of a variety of attributes or ‘characteristics’ on the rates charged for hotel rooms in Taipei. The authors employ a ‘hedonic pricing’ method and use data obtained for 73 hotels from an Internet travel agent. The results show that hotel location, the availability of LED TV and the presence of conference facilities have significant effects on both weekday and weekend room rates. By contrast, Internet access and the presence of a fitness centre have significant effects on weekday rates only, while room size has a significant effect on weekend rates only. Of particular interest, given the results obtained in earlier work, is that in Taipei there is a negative relationship between proximity to the city centre and room rates, both on weekdays and at weekends.