Determinants of Hotel and Resort Room Rates in the West Beach of Thailand: Hedonic Pricing Approach

Abstract

Determinant of hotel and resort room rates along the West Coast of Thailand was based on Hedonic Price Approach. The objective of effect factors to price of Hotels & Resorts along the West Coast. The secondary data was room rate for a one-night stay for a double room and a single bed for a period of 5 quarters from the third quarter of 2016 to the third quarter of 2017 for six models: all factors for price, all factors for semi-log price, star levels for price, star levels for semi-log price, season for price and season for semi-log. The study aims were test the effect of hotel characteristics on accommodation rates in hotels and resorts along the west coast by supply side for economics. The factors of hotel characteristics were divided into 3 groups: accessibility characteristics, structural characteristics, and neighborhood characteristics. The result of studying was factor of high star, high season, high satisfaction score for accommodation on internet, low rated review, less distance from the hotel to the city to be effect group of accessibility. The structural characteristics were type of room for hotels as extra facilities feature which were beautifully decorated by room type, the high size of the square meter, freely internet access, more number of double beds, room with sea view, service of hairdryer, have newspaper service in room. The structural characteristics were beachfront, service of spa massage, sauna and conference rooms to be highly room rates for hotel and resort along west coast in Thailand. Tourists considered asymmetric information about hotel characteristics for each hotel then they could not be able to receive information about the hotels as hidden information. Adverse Selection problem was not able to know the complete properties of the hotels. The signaling solution was considered the star rating of the hotel standardization by the Thai Hotels Standards Foundation, the Tourism Authority of Thailand. Additional, The factor of seasonal tourism by accommodation of weekdays and holidays was signaling to the tourists for determinant of hotel and resort room rates.