A Study on Hedonic Price of International Tourist Hotel

[[abstract]]According to the data collected by the Tourism Bureau in the end of 2005, one can find there are fifty-nine international hotels offering 17,707 rooms to serve tourist in Taiwan. There are twenty-nine other international hotels are preparing to build or applying for the licenses to support another 8,923 rooms as well. The price will not be the only issue to be worried since the competition is increased by the participation of those new hotels. On the other hand, the environment of residence, facilities and the quality of service will be concentrated by customers. The hedonic price theory applied by linear regression method are introduced in this dissertation to estimate the implicit values and study the appropriate pricing mechanism of international hotels in Taiwan to understand how much attention the customers pay for the different characteristics. This is also helpful for those new hotels to design an appropriate investment project considering about the implicit cost of the ratio of employee, rooms, brand and other hardware. The research presents that the characteristics of international hotel show different seasonal tendencies. There is no common equation to calculate the characteristic price in different seasons. The ratio of employee, rooms, sauna, spa and brand are the factors that obviously affect the pricing method. Especially the ratio of the employee is the only factor showing an obvious positive relation to the price in every season. The factors of style, customer source, the ratio of group and singular tourist, and the location do not show an obvious effect to the price of the international hotels