D 2019

Price elasticity in the market of accommodation services - empirical study in Berlin, Warsaw and Prague

PETŘÍČEK, Martin

Základní údaje

Originální název

Price elasticity in the market of accommodation services - empirical study in Berlin, Warsaw and Prague

Název anglicky

Price elasticity in the market of accommodation services - empirical study in Berlin, Warsaw and Prague

Autoři

PETŘÍČEK, Martin

Vydání

Liberec, Proceedings of the 14th International Conference Liberec Economic Forum 2019, od s. 238-246, 9 s. 2019

Nakladatel

Technical University of Liberec

Další údaje

Typ výsledku

Stať ve sborníku

Utajení

není předmětem státního či obchodního tajemství

Forma vydání

tištěná verze "print"

Organizační jednotka

University College Prague – Vysoká škola mezinárodních vztahů a Vysoká škola hotelová a ekonomická s.r.o.

ISBN

978-80-7494-482-6

Klíčová slova anglicky

price elasticity, demand, accommodation, revenue management

Příznaky

Mezinárodní význam, Recenzováno
Změněno: 25. 9. 2019 16:43, doc. Ing. Martin Petříček, Ph.D.

Anotace

V originále

The submitted paper focuses on the issue of price elasticity of demand for accommodation services between 2014 and 2018. The measurement of price elasticity is performed using a log-log regression analysis. This paper focuses on the markets in the capitals of Germany, Poland, and the Czech Republic, because these markets often have a similar customer base and represent exciting destinations for tourists to Central Europe. One of the results of this paper is that the demand for accommodation services in all monitored destinations is inelastic. This means that a percentage change in price leads to less than one percent change in quantity demanded. This price inelasticity can be a significant indicator of how to change prices in the markets in general so that companies can increase their revenue. The research also shows that we can follow a decreasing trend of price elasticity in the long term. In the past two years, we can also argue that Berlin is showing an increase in the price elasticity of the demand, thus distinguishing it from the other two markets. The results of this research provide background for further analysis and also as input for a detailed study of consumer behavior. Understanding this fundamental feature of consumer behavior (i.e., price-sensitivity) is absolutely necessary for the correct pricing, which is the primary prerequisite for the market of accommodation services to enable companies to increase their expected revenue.

Anglicky

The submitted paper focuses on the issue of price elasticity of demand for accommodation services between 2014 and 2018. The measurement of price elasticity is performed using a log-log regression analysis. This paper focuses on the markets in the capitals of Germany, Poland, and the Czech Republic, because these markets often have a similar customer base and represent exciting destinations for tourists to Central Europe. One of the results of this paper is that the demand for accommodation services in all monitored destinations is inelastic. This means that a percentage change in price leads to less than one percent change in quantity demanded. This price inelasticity can be a significant indicator of how to change prices in the markets in general so that companies can increase their revenue. The research also shows that we can follow a decreasing trend of price elasticity in the long term. In the past two years, we can also argue that Berlin is showing an increase in the price elasticity of the demand, thus distinguishing it from the other two markets. The results of this research provide background for further analysis and also as input for a detailed study of consumer behavior. Understanding this fundamental feature of consumer behavior (i.e., price-sensitivity) is absolutely necessary for the correct pricing, which is the primary prerequisite for the market of accommodation services to enable companies to increase their expected revenue.