Search Cost Reduction Increases Variation In Hotels Occupancy Rate: A Theoretical And Empirical Analysis
AbstractThis study explores how direct online booking affects the variation in hotel bed-places occupancy rate between peak and off-peak periods, thereby contributing to three strands of literature, respectively the determinants of seasonality, the tourist information acquisition process and the impact of the internet on tourism. The empirical analysis, covering 18 countries over the 1997-2007 period, investigates the impact of an increase in the use of the internet by consumers on the seasonal variation in the occupancy rate. We find that internet actually increases the variation in occupancy. We contribute to reduce the lack of a theoretical framework in this field by developing a formal model to illustrate why and how the reduction in search cost entailed by the use of the internet can indeed lead to a higher seasonality.
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Bibliographic InfoPaper provided by Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica) in its series Working Papers with number 201020.
Length: 24 pages
Date of creation: Nov 2010
Date of revision:
Contact details of provider:
Postal: Università della Calabria, Dipartimento di Economia, Statistica e Finanza, Ponte Pietro Bucci, Cubo 0/C, I-87036 Arcavacata di Rende, CS, Italy
Phone: +39 0984 492413
Fax: +39 0984 492421
Web page: http://www.unical.it/portale/strutture/dipartimenti_240/disesf/
More information through EDIRC
Internet; Search Costs; Net Occupancy Rate of bed-places;
Find related papers by JEL classification:
- D40 - Microeconomics - - Market Structure and Pricing - - - General
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-11 (All new papers)
- NEP-ICT-2010-12-11 (Information & Communication Technologies)
- NEP-TUR-2010-12-11 (Tourism Economics)
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