Hotel attributes and hedonic prices: an analysis of internet-based transactions in Singapore's market for hotel rooms

A number of valued attributes determine the room rates that hotels charge. These attributes include not only room quality characteristics, but also access to various shared hotel facilities, service quality, and access to amenities beyond the hotel itself. Using a hedonic price function approach, this paper reports estimated implicit prices for hotel room attributes in Singapore. Real transaction prices are regressed against objective attributes and consumer perceptions, as reported by an on-line travel agency. Most objective characteristics are significant in all functional specifications, and consumer perceptions explains much of the variability within a given star-rating (3, 4 or 5) of the hotel.