The Contributions of Certain Variables in Determining Room Rates

Background: Researchers have given enormous importance to the hospitality industry, especially through studies that have analyzed the factors that affect traveler' decisions to book accommodation in hotels (e.g. room rate, amenities and location). However, data are generally examined from a guest's or a manager's point of view. Objective: This study examines factual data aiming to understand the extent to which the occupancy rate, quality, location and organizational form explain the room rates of hotels classified as four and five star. Data from hotels established in Salvador, Bahia, Brazil, for a period of eleven years were gently provided by hoteliers and analyzed by multiple regression tests. Results: Among the six models obtained, the best model shows that the predictor variables explain 72.8% of the fees charged by the hotels examined in our research, and that the 'hotel quality' and 'occupancy rate' variables are those that contribute most positively to the configuration of the response variable. Conclusion: The models delivered by this study are the outcome of the multiple regression tests performed with five variables. There are other variables which might be included. However, the five variables explain 72.8% of the fees. The study is relevant to hoteliers because it analyses variables that directly affects the revenues of hotels. Knowing its contributions, hoteliers can decide investments to enhance outcomes