DETERMINANTS OF HOTEL REVENUE PER AVAILABLE ROOM IN PERU: AN ANALYSIS BY ACCOMMODATION CATEGORY

Authors

  • M. H. Alvarado Anampa1*, M. Escobar-Soldevilla1, V. G. Sánchez Araujo1, J. L. De la Cruz Ccora1, C. Dueñas Jurado1, K. E. Madrid Gómez1, F. Gomez De La Cruz1, W. F. Paco Huamani1, J. C. Ayuque Rojas1 Author

Abstract

Determining the price or rate per room to be charged to customers is a fundamental decision for hotel managers. It is common for hotels to frequently change the price of their rooms based on various factors such as market demand, occupancy rate, vacation time, competition, among other factors. In this regard, a model of the data panel type has been specified; whose cross-sectional dimension included three accommodation segments and the temporary dimension covered from January 2014 to December 2021; this in order to analyze the influence of the occupancy rate and the average rate per room on revenue per available room (RevPar). For this, a balanced data panel was built with monthly information from STR. It was found that the grouped regression is the most appropriate to explain the behavior of the RevPar; evidencing the absence of differentiating characteristics in terms of RevPar between lodging categories. The empirical results showed a direct and significant effect of the occupancy rate and the average room rate on RevPar.

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Published

2023-09-20

Issue

Vol. 5 No. 2 (2023)

Section

Articles