THE INFLUENCE OF HOTEL CHARACTERISTICS ON ROOM RATES: A CASE OF VIETNAM

The effect of hotel characteristics on hotel room rates has not been adequately studied in the extant literature. The purpose of this study was to use the hedonic pricing method to measure and compare how different factors of hotels affect room rates. After collecting the data on hotel features that consumers use to make lodging decisions on the TripAdvisor website, a hedonic price model with Box-Cox transformations was built with 23 hotel characteristics. The findings indicate that hotel managers can devise strategies to improve the hotel's attractiveness and service quality, and to change and optimize hotel room rates.