3 research outputs found
FDI Determinants: Case of Romania
FDI in Romania, Reasons for FDI, Factor analyses, Regression analyses, Main determinants, F21, F23,
Pricing of the tourism product: a tool for entrepreneurs to adapt to a flexible market
The paper approaches the hedonic pricing analysis as a useful instrument for tourism entrepreneurs
to get a competitive advantage through price setting policies. The main goal of this research is to
conduct an analysis useful to measure the marginal effect of the attributes which contributes to price
setting; the empirical analysis is developed on the prices of accommodation establishments from
Romania. The study focuses on small and medium sized accommodation units, most of them entirely
privately-owned. Within the analysis we set attributes from inside and outside the accommodation
establishment as long as they are both ultimately linked with the pricing policy. Several hedonic
specifi cations are estimated, in order to investigate the signifi cance of accommodation attributes
in the formation of room rates. There is a set of attributes with signifi cant effect on the room price
in all models, but with different intensity. The managers have to pay more attention to their internal
facilities, goods or amenities (as recreational facilities), and to be committed to increasing the quality
of their service delivery process, but there is also an opportunity for higher prices supported by
attractive neighbourhoods. These fi ndings are useful for the entrepreneurs interested in developing
new businesses in tourism but also for managers already performing in the sector. Both categories
have to face challenges such as new services development, price setting policy, choosing new
locations. A fl exible pricing strategy could become an effective and effi cient tool for accommodation
units in order to increase their performance. These elements are potential competitive dimensions
and provide good opportunities for adapting to a dynamic market. Public and local administration
organizations can develop appropriate policies for regional development based on hedonic models
and thus, generate revenues and create opportunities for a sustainable development of tourism and
also of the geographical region