A hedonic analysis of the determinants of hotel room rates in the Greater Gaborone Region (Botswana) using quantile regression

Abstract

PurposeThe purpose of this study is to examine the influence of key hotel attributes on the room rates of selected hotels in the Greater Gaborone Region, Botswana.Design/methodology/approachUsing hedonic pricing analysis, the effect of eight attributes collected from 80 standard double rooms on Booking.com in the area was analysed using quantile regression.FindingsThe estimated results from quantile regression suggested the importance of the 10th quantile as the best predictor of hotel room price distribution. Overall, the presence of a fitness centre and the availability of meeting and conference facilities were positively significant for the lowest- and premium-priced hotels, respectively.Research limitations/implicationsThe study advanced the literature in hedonic pricing models by confirming the applicability of hotel room rate attribute research in unexplored environments.Practical implicationsHotel managers should be aware of the influence of key attributes, such as meeting and conference space availability and locational factors, on the pricing decisions of room rates in the Greater Gaborone Region. The study also presented opportunities for business-to-business marketing between hotel and tour operators in the region.Originality/valueThe study is one of the few that uses quantile regression in the hedonic pricing analysis of hotel room rates.