Abstract
ABSTRACT This paper elucidates, does revenue per available room respond asymmetrically to the occupancy rate? The two-step nonlinear autoregressive distributed lag model is used on a Swedish dataset with monthly observations spreading over March 2008 to February 2020 to address this research question. Results of empirical analysis offer corroborative evidence that revenue per available room is asymmetrically related to the occupancy rate. Our results show that revenue per available room responds marginally more strongly to a decrease in occupancy rate than to the rise in occupancy rate. The paper ends with plausible implications for effective revenue management.
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