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An Investigation of the Determinants of Profitability in a Short‐Stay Accommodation Market

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  • Ann Marsden
  • Hugh Sibly

Abstract

This paper examines the determinants of the profitability of short‐stay accommodation providers in Tasmania, utilising a survey conducted from July 2007 to June 2008. The survey provides insight into a time when some firms had adopted the 'new' information technologies to make sales while others continued with traditional methods. We find the use of online sales is associated with higher profit. Further profit is higher during summer (high season), for firms with a high star rating and for firms who make a larger proportion of their sales directly to customers, and lower when owner operators are motivated by lifestyle considerations.

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  • Ann Marsden & Hugh Sibly, 2020. "An Investigation of the Determinants of Profitability in a Short‐Stay Accommodation Market," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 539-553, December.
    • Handle: RePEc:bla:ausecr:v:53:y:2020:i:4:p:539-553
    DOI: 10.1111/1467-8462.12395
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