Regression Analysis of American Hotels Having Price as Dependent Variable

Answer = A visual representation of the relationship between the independent and the dependant variables. Either bar or line graph.

The demand for hotel rooms for people planning a vacation is price elastic. The choice of a different hotel can be made if the price of the hotel increases or if it is too expensive for the vacationer.

In order to figure out how variables relates to each other and the connections among the variables, or one can predict the other. I will choose three quantitative variables or two quantitative variables and one categorical variable on each pairs. I will also use graphs of scatter plots; regression and correlation to understand that how one variable affect other two variables. There are six groups below:

"There are several different kinds of relationships between variables. Before drawing a conclusion, you should first understand how one variable changes with the other. This means you need to establish how the variables are related - is the relationship linear or quadratic or inverse or logarithmic or something else" ("Relationship Between Variables ", n.d)

Our team chose the hotel industry in the United States for our economic analysis. The hotel business has existed since the earliest times, and has influenced the development of the economy since the founding of this country.

The mission of the hotel is to cater to a professional clientele who is likely to increase the revenues of Amber Inn. These kinds of patrons do not worry about price since most of the times they are covered by the Company they work for and they tend to have a prolonged stay. The necessities of those customers are more regular than the individuals that are on a vacation trip; thus, there is no difficulty to find out what do to. For instance, internet services would suffice those on a business trip whereas those on a leisure trip would worry about entertainment such as live music. Some researchers suggested that, the publicity is unnecessary in determining which hotel to choose. Internet can be a primary factor, as a sales element such as hotels.com. I advise excluding or decreasing ad for almost 4.4 million, lowering the

Hilton Hotels is one of the biggest players in the US lodging industry. It contributes to about 9% of the total rooms in US lodging market. It has presence in over 78 countries with more than 2500 hotels. Lodging industry is highly capital intensive industry, so to reduce capital expenditure Hilton Hotels opted for self-owned Hotels as well as franchising model with the real estate owners. One of the key features of lodging industry is low switching costs for customers. There is very little margin to differentiate from the major competitors in the industry which include Marriott international, IHG, Accor etc.

What factors lead to variations in demand for rooms at a hotel such as the Accra Beach?

Noone, B. M., & Lee, C. (2011). Hotel Overbooking: The Effect of Overcompensation on Customers’ Reactions t

Within the luxury tier, many of the players do not actually own the hotels themselves, but instead manage the operation of the business, similar to that of FSH. In the luxury segment, competition for acquiring new management agreements becomes very high as hotel owners make their choices based on the quality and value of a company's management service and most importantly, its brand name. Moreover, guests who choose to stay in luxury hotels are commonly not very price sensitive, and thus it is essential that a hotel distinguish itself amongst its competition by providing value added services as well as maintaining an untarnished, reputable brand name and image.

At Ritz-Carlton, electronic databases are used to track guest’s preferences and tastes enabling them to provide express check-in for their regular guests. Legal and political conditions, such as war or political strife between countries, limit international travel which can have a detrimental impact on international locations. In addition to these extreme circumstances, legal restrictions, such as zoning restrictions, may force Ritz to limit the height or size of their hotels in certain regions. Specific international events, such as the current economic recession, have had major impacts on the demand for luxury accommodations. Lastly demographics play a role in site location for a luxury hotel. The population surrounding a hotel can often dictate the type and amount of clientele the hotel will receive. (Exhibit 1)

With multiple hotels cost can be quite high due to expenses such as food and upkeep of the hotels.

The researcher opines that by increasing prices a rise in the ADR can be achieved since it is a sum total of room revenue multiplied by occupancy %. However, while the prices are increased the existing guest may be resistance to pay the increased price with the same facilities provided by the hotel.

More often than not, the reason why most hotels are costly is due to the fact

Chan, ESW & Wong, SCK 2006, ‘Hotel selection: when price is not the issue’, Journal of Vacation Marketing, vol. 12, no. 2, pp. 142-159, (Online Sage).