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Does advance booking matter in hedonic pricing? A new multivariate approach
Author(s) -
Guizzardi Andrea,
Angelini Giovanni,
Pons Flavio Maria Emanuele
Publication year - 2019
Publication title -
international journal of tourism research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.155
H-Index - 58
eISSN - 1522-1970
pISSN - 1099-2340
DOI - 10.1002/jtr.2331
Subject(s) - multivariate statistics , econometrics , economics , variable (mathematics) , autoregressive model , vector autoregression , hedonic pricing , cointegration , statistics , mathematics , mathematical analysis
We consider prices across the advance bookings as a multivariate variable, modelling the time effect by means of a structural vector autoregression. Its unit‐specific fixed effect is taken as the dependent variable in a set of hedonic regressions allowing us to estimate the marginal contribution to price of the (time‐invariant) attributes along the price trajectory. Results from our two‐step approach indicate that although past occupancy rates, events, bank holidays, and seasonality differentiate pricing strategies across advance bookings, time‐invariant services/attributes tend to increase in hedonic value as the advance booking period decreases, reducing the contribution of dynamic pricing.