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

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25619161%3A_____%2F19%3AN0000058" target="_blank" >RIV/25619161:_____/19:N0000058 - isvavai.cz</a>

Výsledek na webu

<a href="http://lef.tul.cz/" target="_blank" >http://lef.tul.cz/</a>

DOI - Digital Object Identifier

—

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku 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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2019

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 14th International Conference Liberec Economic Forum 2019

ISBN

9788074944826

ISSN

—

e-ISSN

—

Počet stran výsledku

9

Strana od-do

238-246

Název nakladatele

Technical University of Liberec

Místo vydání

Liberec

Místo konání akce

Liberec

Datum konání akce

17. 9. 2019

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

—