Hedonic Price Analysis of Hotel Rooms in Cyprus
The aim of the current study is to investigate which attributes or characteristics have significant effects on the hotel room prices in Cyprus. The author follows a hedonic price analysis approach and employs a data set consisting of 92 hotels, collected from a private tourist agent. The empirical findings indicate that hotel star rating, spa facilities, playgrounds, table tennis activities and proximity to a bus station have all significant effects on the hotel room prices, in both the summer and the winter seasons. Contrary, air-conditioning, direct-dial telephone and the presence of tennis court and indoor pool amenities affect the room rates only in the summer, while existence of a radio in the room has a significant effect on its pricing only in the winter. What is particularly noteworthy, given the empirical findings of existing studies, is that in Cyprus there seems to be an adverse effect from certain attributes (e.g., proximity to a public transportation hub) to the room rates, at both summer and winter.