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Using a spatial hedonic analysis to evaluate the effect of sea view on hotel prices

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  • Latinopoulos, Dionysis

Abstract

This paper attempts to examine the effect of sea view to room rates alongside other structural and locational attributes. Specifically, it aims to test whether rooms with a sea view are priced higher than others, thus trying to quantify the associated aesthetic values of coastal areas where tourism-related development is a key economic activity. For this purpose, a sample of 557 rooms in Halkidiki, Greece was collected through an online database during the summer tourist season. Subsequently, these data were integrated into a GIS-system in order to apply a spatial hedonic model. A semi-parametric geographically weighted regression model was used to assess the local effects, as well as, to investigate the spatial variability of the selected attributes. The results exhibited a significant spatial variability concerning the effect of sea view to room rates, indicating that local natural and/or tourism resources may have a substantial role in aesthetic values.

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  • Latinopoulos, Dionysis, 2018. "Using a spatial hedonic analysis to evaluate the effect of sea view on hotel prices," Tourism Management, Elsevier, vol. 65(C), pages 87-99.
    • Handle: RePEc:eee:touman:v:65:y:2018:i:c:p:87-99
    DOI: 10.1016/j.tourman.2017.09.019
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    2. Fernandez, Mario Andres & Bucaram, Santiago, 2019. "The changing face of environmental amenities: Heterogeneity across housing submarkets and time," Land Use Policy, Elsevier, vol. 83(C), pages 449-460.
    3. Kim, Jinwon & Jang, Seongsoo & Kang, Sanghoon & Kim, SeungHyun (James), 2020. "Why are hotel room prices different? Exploring spatially varying relationships between room price and hotel attributes," Journal of Business Research, Elsevier, vol. 107(C), pages 118-129.
    4. De Salvo, Maria & Capitello, Roberta & Gaudenzi, Barbara & Begalli, Diego, 2019. "Risk management strategies and residual risk perception in the wine industry: A spatial analysis in Northeast Italy," Land Use Policy, Elsevier, vol. 83(C), pages 47-62.
    5. Spanou, Elisavet & Kenter, Jasper O. & Graziano, Marcello, 2020. "The Effects of Aquaculture and Marine Conservation on Cultural Ecosystem Services: An Integrated Hedonic – Eudaemonic Approach," Ecological Economics, Elsevier, vol. 176(C).

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