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Hedonic Pricing Models in Rural Tourism: Analyzing Factors Influencing Accommodation Pricing in Romania Using Geographically Weighted Regression

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  • Marius-Ionuț Gordan

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania
    Doctoral School Engineering of Plant and Animal Resources, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Valentina Constanța Tudor

    (Faculty of Management and Rural Development, University of Agronomic Sciences and Veterinary Medicine, 010961 Bucharest, Romania)

  • Cosmin Alin Popescu

    (Faculty of Agriculture, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Tabita Cornelia Adamov

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Elena Peț

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Ioana Anda Milin

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

  • Tiberiu Iancu

    (Faculty of Management and Rural Tourism, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania
    Doctoral School Engineering of Plant and Animal Resources, University of Life Sciences “King Mihai I” from Timișoara, Calea Aradului No. 119, 300645 Timişoara, Romania)

Abstract

This study investigates the factors influencing pricing in Romanian rural tourism using a hedonic pricing model through a hybrid LASSO-OLS regression and geographically weighted regression (GWR). By analyzing data from 5028 unique accommodation units across 1170 local administrative units, we identify some key pricing determinants, including accommodation size, capacity, facilities, and environmental attributes. The results reveal that larger accommodations and those with higher guest capacities command higher prices. Luxurious facilities, such as massage services, pools, and fireplaces, significantly increase pricing, although the impact of such features varies by region, as do accommodation type and natural scenery, with agritouristic boarding houses and proximity to natural attractions like water bodies and forests being more valued in certain regions. These factors can aid rural entrepreneurs in optimizing pricing to enhance competitiveness and profitability.

Suggested Citation

  • Marius-Ionuț Gordan & Valentina Constanța Tudor & Cosmin Alin Popescu & Tabita Cornelia Adamov & Elena Peț & Ioana Anda Milin & Tiberiu Iancu, 2024. "Hedonic Pricing Models in Rural Tourism: Analyzing Factors Influencing Accommodation Pricing in Romania Using Geographically Weighted Regression," Agriculture, MDPI, vol. 14(8), pages 1-22, July.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:8:p:1259-:d:1446694
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    References listed on IDEAS

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    1. Njegovan, N. & Demirovic, D. & Vasko, Z., 2018. "Selection and application of pricing strategies in rural tourism: the case of Vojvodina's farmsteads," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 4(1), pages 18-23.
    2. Isabel Vanslembrouck & Guido Van Huylenbroeck & J. Van Meensel, 2005. "Impact of Agriculture on Rural Tourism: A Hedonic Pricing Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 17-30, March.
    3. Loïc Lévi & Jean Jacques Nowak & Sylvain Petit & Hakim Hammadou, 2022. "Industrial legacy and hotel pricing: An application of spatial hedonic pricing analysis in Nord-Pas-de-Calais, France," Tourism Economics, , vol. 28(4), pages 870-898, June.
    4. Baldwin Tong & Ulrich Gunter, 2022. "Hedonic pricing and the sharing economy: how profile characteristics affect Airbnb accommodation prices in Barcelona, Madrid, and Seville," Current Issues in Tourism, Taylor & Francis Journals, vol. 25(20), pages 3309-3328, October.
    5. Cankun Wei & Meichen Fu & Li Wang & Hanbing Yang & Feng Tang & Yuqing Xiong, 2022. "The Research Development of Hedonic Price Model-Based Real Estate Appraisal in the Era of Big Data," Land, MDPI, vol. 11(3), pages 1-30, February.
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    Cited by:

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