Rice Developments in the Hospitality Industry in Slovenia

Abstract

This paper focuses on the determinants of the hospitality industry price developments, which is based on the time-series seasonally unadjusted monthly statistical data from January 2000 to September 2010. By using the principal component analyses, the two common components of the hospitality industry price behaviours are identified: the general level of prices and the bipolar component of demand for services in hospitality industry.The econometric tests confirmed that the nonstationary sequences in time-series data are integrated of the same order and the residuals contain a stochastic trend. The first difference is stationary. The results indicate that the hospitality industry prices are significantly positively associated with domestic consumer prices and hospitality industry prices in the euro zone. The regression equation in the first differences also confirmed that the hospitality industry prices are significantly negatively associated with the fuel prices and with the dummy variable, which captures the time period after the Euro adoption in Slovenia in 2007.